Update on Five Year Plan - Almarai
Almarai Company 2012 Full Year 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
2012 Q4 Earnings Presentation
2
Business Highlights
Financial Highlights – Full year 2012
Revenue of 9.9B SAR, growth of 24.3% driven by core business (poultry 58%, bakery 34% and juice 21%) and inclusion of IDJ results in the top line. Revenue growth of 17.6% in KSA, 17.1% in all other GCC states and 583.7% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ. EBITDA of 2.4B SAR grew by 17.2%, EBITDA Margin now stands at 24.2% of revenue. EBIT of 1.7B SAR grew by 10.2%. EBIT growth lags revenue growth due to delayed impact of commodity price softening and higher overheads in line with capacity growth, which is yet to match revenue growth. The net results of the company includes capital gain of 47.2M resulting from the sale of land to the government to facilitate road widening in Al-Kharj. Net operating cash flow of 2.4B SAR grew by 23.9% backed by EBIT growth of 10.2%, improvement in working capital and higher sales of assets.
Capital expenditure spend for the full year was 3.1B SAR, which is in line with earlier forecasts.
The first tranche of Sukuk program was launched earlier in the year amounting to 1.0B SAR.
The Board of Directors propose for approval at the AGM a dividend of SAR 0.5B (SAR 1.25 / share).
Almarai Company
2012 Q4 Earnings Presentation
4
Operational Highlights – Full year 2012
Volume growth of 13.9% excluding IDJ. Price & Mix effect accounted for 2.7% of the growth. Strong sales growth experienced across all key product categories.
Distribution drive helped achieved higher sales growth, with particular focus for bakery expansion in Gulf and new/improved distribution facilities. In addition, lean management program across the full supply chain and stock replenishment program were introduced to achieved higher product penetration and lower wastage. Manufacturing efficiency program helped further available capacity across major product lines, assisted by state of the art line extention of bread line. Further the commercial start of baby food manufacturing plant, the commissioning of poultry processing plant and expansion of Al-Badiya Farm were the key milestones during the year. Procurement & operational initiatives, along with commodity hedging, helped manage operating margin. Staff strength stood at 28.5K, an increase of 28% yoy. Staff strength accounted for part of the increase of overhead growth, including higher statutory charges, which is running in line with capacity expansion but behind volume and revenue growth. Within KSA, Almarai ranking still stands at high end of green band in Nitaqat. IDJ consolidation effect accounted for 7.7% of the full year growth. High double digit organic growth experienced across all IDJ entities, especially Beyti. Most controls & processes are updated with Almarai systems and this process will continue in 2013.
Lead the innovation efforts in our selected markets by launching 33 news products during the year
Almarai Company
2012 Q4 Earnings Presentation
5
Strong pipeline of innovation throughout 2012
Almarai Company
2012 Q4 Earnings Presentation
6
Sales Highlights
Sales Growth – Geography mix Full year 2012
Full year 2011 All Ot hers 1% GCC 28 %
GCC 26%
KSA 67%
KSA 71%
6.7
KSA
5.7 2.6
GCC All Others Almarai Group
All Ot hers 7%
17. 6%
17.1 %
2.2 0 .7
584 %
0 .1
9.9 8 .0
2011 Rev in B SAR
24.3 %
2012 Rev in B SAR %
Almarai Company
2012 Q4 Earnings Presentation
Growth 8
Sales Analysis by Product & Region Sales by Country - YTD Q4 2012
Sales by Product YT D Q 4
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 12
4,0 62.1 1,0 16.2 1,243.2 1,60 1.8 1,290 .6 50 4.4 115.3 49.4 9 ,8 8 3 .0
Qatar 4.2%
2 0 11 % chang e 3,475.7 16.9% 761.1 33.5% 8 8 8 .1 40 .0 % 1,446.6 10 .7% 966.4 33.6% 319.2 58 .0 % 72.6 58 .8 % 21.2 132.8 % 7,9 5 1.0 2 4 .3 %
Bahrain 2.0%
Oman 5.2%
UAE 9.8%
Egypt 3.3%
Jordan 1.9% Export / Others 1.4%
Kuwait 4.9%
KSA 67.3%
Participation vs Growth – YTD Q4 2012 Participation YTD Q4 2012
Poultry
Growth (YTD Q4 2012 v YTD Q4 2011)
5.1%
Long-Life Dairy
58.0%
10.3% 33.5%
Fruit Juice
12.6%
40.0%
Bakery
13.1%
33.6%
Cheese & Butter
16.2%
10.7%
Fresh Dairy
41.1% 0%
Almarai Company
40% 10%
30% 20% 20%
30%10%
16.9%
40%0%
10% 50%
2012 Q4 Earnings Presentation
20% 60%
30% 70%
40%80%
90%
9
Statement of Income
Statement of Income – Full Year 2012 20 12
SAR m illion Net Sales Cost of sales Gross Profit Selling and Distribution Expenses General and Administration Expenses EBIT Share of Results of Associates
7,9 51.0 (4,954.5)
24 .3% 28 .6%
3,511.1 (1,616.7) (221.4)
2,9 9 6 .5 (1,213.2) (265.7)
17.2% 33.3% (16.7%)
1,6 72.9 (24.6)
1,517.6 (42.3) (160 .2) (135.0 )
10 .2% (41.9%) n.a 16.7%
1,18 0 .1
26 .3%
(157.5)
Incom e from Main and Continuing Operations Zakat and Income Tax
Change
9 ,8 8 3.0 (6,371.9)
Im pairm ent Loss Bank Charges
Full Year 20 11
1,4 9 0 .9 (50 .9)
(33.2)
53.6%
Net incom e before Minority Interest Minority Interest
1,4 39 .9 0 .7
1,14 6 .9 (7.4)
25.5% (10 9.7%)
Net Incom e
1,4 4 0 .6
1,139 .5
26 .4 %
3.6 0
2.8 5
Earnings Per Share
Almarai Company
2012 Q4 Earnings Presentation
11
Evolution of key financial metrics - during the year 2012 Net Sales Gross Profit EBIT DA EBIT Net Incom e EPS
Q1
Q2
20 12 Q3
2,0 40 .3 70 7.3 447.5 292.5 242.1 0 .6
2,524.1 921.7 60 6.8 434.6 379.5 0 .9
2,673.0 1,0 12.2 699.3 50 8 .6 450 .0 1.1
Full Year
2,645.5 8 69.9 633.5 437.3 369.0 0 .9
9,8 8 3.0 3,511.1 2,38 7.1 1,672.9 1,440 .6 3.6
20 12 Growth rate Q2 Q3 Q4
Q1 Net Sales Gross Profit EBIT DA EBIT Net Incom e EPS
Q4
17.0 % 11.5% 11.6% 0 .3% 2.9% 2.9%
25.4% 18 .7% 15.7% 7.1% 8 .7% 8 .7%
27.0 % 16.2% 13.9% 6.6% 4.7% 4.7%
26.6% 20 .2% 27.3% 27.4% 29.2% 29.2%
Full Year
24.3% 16.8 % 17.2% 10 .2% 26.4% * 26.4% *
* The full year growth includes the effect of Zain impairment of 160.2M SAR in 2011
Almarai Company
2012 Q4 Earnings Presentation
12
Segment Reporting SAR M illion YTD Q 4 20 12 Sales Third Part y Sales Net Depreciat ion Income/(loss) before Minorit y Int erest Tot al Asset s Tot al Liabilit ies
D airy & Juice
Bakery
Poult ry
Arable and H ort icult ure
O t her Act ivit ies
Alm arai Consolidat ed
7,98 8 .4 7,972.7 (48 1.3)
1,290 .6 1,290 .6 (114.2)
50 4.4 50 4.4 (50 .3)
38 6.0 115.3 (68 .3)
0 .0 0 .0 0 .0
10 ,169.4 9,8 8 3.0 (714.2)
1,371.8
171.8
(96.8 )
30 .9
(37.8 )
1,439.9
11,0 47.0 (10 ,0 50 .0 )
2,0 0 2.5 (233.5)
3,728 .6 (28 7.5)
1,736.2 (243.7)
1,0 0 4.4 (533.0 )
19,518 .6 (11,347.7)
Ret urn on Sales Growt h versus Q4 YTD 20 11 - Third Part y Sales
17.2%
13.3%
(19.2%)
26.8 %
n.a.
14.6%
20 .9%
33.6%
58 .0 %
58 .8 %
n.a.
24.3%
- Income before Minorit y Int erest
13.9%
45.6%
n.a.
(41.4%)
n.a.
25.5%
2,10 7.7 2,10 2.4 (134.1)
369.3 369.3 (31.3)
162.5 162.5 (13.6)
97.4 11.4 (17.3)
0 .0 0 .0 0 .0
2,736.9 2,645.5 (196.2)
366.0
61.5
(32.8 )
(12.9)
(9.4)
372.4
Q 4 20 12 Sales Third Part y Sales Net Depreciat ion Income/(loss) before Minorit y Int erest Ret urn on Sales Growt h versus Q4 20 11 - Third Part y Sales
17.4%
16.6%
(20 .2%)
(113.4%)
n.a.
14.1%
24.5%
33.1%
64.0 %
(53.1%)
n.a.
26.6%
- Income before Minorit y Int erest
41.5%
10 2.3%
47.7%
(136.7%)
(44.0 %)
30 .5%
Almarai Company
2012 Q4 Earnings Presentation
13
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%
9,883
21.1%
19.4%
19.1%
CAGR 2006 – 2012: 23.7% (w/o impact of acquisitions 17.8%) Revenues
7,951 6,931
16.9%
5,869
EBIT %
5,030
EBITDA % 3,770 2,757
2006
2007
2008
2009
2010
2011
2012
• After excluding the impact of IDJ consolidation, Net Operating income % for 2012 is revised to 17.9%.
Almarai Company
2012 Q4 Earnings Presentation
15
Quarterly Performance – Net Income 2012 versus 2011 500
Q3 = 4.7% 450
Q4 = 29.2%
Q2 = 8.7%
400 350
3 6 9.0 28 5.5
28 3.5
24 8 .8
219 .2
19 3.1
13 0 .2
4 50 .0
4 29 .7
4 24 .5
3 6 3.4
29 3 .7
18 6.1
122.6
3 79.5
3 4 9.3
28 7.1
23 5.2
16 5.3
23 5.2
24 2.1
121.8
122.8
50
9 0 .6
100
19 7.4
150
23 4 .1
200
3 4 3.1
Q1 = 2.9%
250
16 2.2
SAR M illion
300
0
16 0 .2m
= Im pairment Loss on Zain Investment
Almarai Company
2012 Q4 Earnings Presentation
16
Cash Flows
Cash Flow Statement (Full year 2012) 400
3,000 2,384
300
SAR Million
Strong revenue growth resulted in positive operating cash flow….
2,500
200 264
100
2,000
0
(97)
(100)
(200)
1,500
(266) (449)
989
(300)
(548)
(400) (500)
383
(600)
SAR M illion From Operating Activities Used in Investing Activities Cashflow Av'ble for Dist'n From Financing Activities Increase/(Decrease) in Cash Cash at beginning of period Cash at end of period
Almarai Company
Q 4 YTD 20 12 20 11 2,38 4 1,924 (2,933) (3,237) (548 ) (1,313) 694 1,345 145 31 272 241 4 17 272
2012 Q4 Earnings Presentation
486 Free Cash Flow
526 Operating Cash Flow
1,000
500 -
….but additional capex investment especially for poultry (1.8B) resulted in negative free cash flow of 0.5B
18
Cash Flow Bridge 1,0 0 0
2,3 8 4
(2,9 37)
20 6 Sukuk Loans Issues / Others
(512) Capex
4
272
Cash Dec 20 11
Almarai Company
Dividend
Operating Cash Flow
+ SAR 145 m
2012 Q4 Earnings Presentation
4 17
Investment in Subsidiary Cash Dec 20 12
19
Balance Sheet
Balance Sheet S AR M illion
3 1.12.12
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
3 1.12.11
932 90 1 13,416 15,249 1,335
805 8 18 10 ,50 8 12,131 8 21
295
90 7
16,8 8 0
13,8 59
Net Debt Employ ee Terminat ion Benefit s Deferred Tax (Net ) Tot al Equit y Net Capit al Employ ed
8 ,30 5 28 7 116 8 ,171 16,8 8 0
6,749 243 88 6,778 13,8 59
Net Debt t o Equit y Rat io
10 1.6%
99.6%
Almarai Company
2012 Q4 Earnings Presentation
21
Net Debt 9 ,0 0 0 8 ,0 0 0
2.8 x
in m illion
7,0 0 0 6 ,0 0 0
350 %
3 .2x
2.3 x
2.3 x
2.3 x
30 0 % 250 %
2.2x
2.0 x 20 0 %
5,0 0 0
4 ,0 0 0
150 %
3 ,0 0 0 2,0 0 0 1,0 0 0
69%
10 0 %
96%
8 1%
73 %
10 2%
76 %
10 0 %
50 % 1,3 15
2,4 6 3
3 ,4 9 9
3 ,9 51
4 ,6 79
6 ,74 9
8 ,3 0 5
0
0% 20 0 6
20 0 7
20 0 8 N e t Debt
20 0 9 N e t Debt / Equity Ratio
20 10
20 11
20 12
N e t Debt / EBITDA
Net Averge Debt to EBITDA by Quarter
3.3x 3.0 x
Almarai Company
2012 Q4 Earnings Presentation
3.3x 3.2x
22
Debt Profile highlights balanced approach for funding…. 2.5
Debt Maturity by Age and Type Islamic Bonds
2.0
Govt / Semi Govt Inst. 1.0, 12%
SAR Billion
Banks 1.5 1.9, 22%
1.0
5.8, 66%
0.5
0.0 2013
Almarai Company
2014
2015
2016
2017
2012 Q4 Earnings Presentation
2018 & Beyond
23
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 3.1B SAR in line with earlier forecast provided and on track for our 5 year projection. Poultry capex spend for the year amounted to 1.8B SAR. Poultry plant started commissioning late in Q4 and is expected to be in full swing by mid Q1.
General sales expansion accounted for 0.4B SAR driven by expansion in depot and sales van. It also included fleet expansion in long haul reefers. Manufacturing and Farming capex, including 0.1B for baby food plant, accounted for 0.5B SAR for the year 2012. Replacement and other accounted for 0.4B SAR.
Almarai Company
capex
including
IDJ,
2012 Q4 Earnings Presentation
25
Key Share Data Key Statistics for Almarai (19 Jan 2013)
300%
250%
200%
Current P/E Ratio (ttm) Estimated P/E(12/2012) Earnings Per Share (SAR) (ttm) Market Cap (M SAR) Shares Outstanding (M) 30 Day Average Volume Dividend Indicated Gross Yield Cash Dividend (SAR) Last Dividend 5 Year Dividend Growth
21.7 18.4 3.0 25,998 400.0 286,033 2.0% 1.3 04-03-12 17.6%
150%
100%
50%
0%
Almarai
Almarai Company
TASI
2012 Q4 Earnings Presentation
26
Q&A
Almarai Company
2012 Q4 Earnings Presentation
27
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
2012 Q4 Earnings Presentation
2
Business Highlights
Financial Highlights – Full year 2012
Revenue of 9.9B SAR, growth of 24.3% driven by core business (poultry 58%, bakery 34% and juice 21%) and inclusion of IDJ results in the top line. Revenue growth of 17.6% in KSA, 17.1% in all other GCC states and 583.7% in rest of the world including Jordan and Egypt, driven by first time consolidation of IDJ. EBITDA of 2.4B SAR grew by 17.2%, EBITDA Margin now stands at 24.2% of revenue. EBIT of 1.7B SAR grew by 10.2%. EBIT growth lags revenue growth due to delayed impact of commodity price softening and higher overheads in line with capacity growth, which is yet to match revenue growth. The net results of the company includes capital gain of 47.2M resulting from the sale of land to the government to facilitate road widening in Al-Kharj. Net operating cash flow of 2.4B SAR grew by 23.9% backed by EBIT growth of 10.2%, improvement in working capital and higher sales of assets.
Capital expenditure spend for the full year was 3.1B SAR, which is in line with earlier forecasts.
The first tranche of Sukuk program was launched earlier in the year amounting to 1.0B SAR.
The Board of Directors propose for approval at the AGM a dividend of SAR 0.5B (SAR 1.25 / share).
Almarai Company
2012 Q4 Earnings Presentation
4
Operational Highlights – Full year 2012
Volume growth of 13.9% excluding IDJ. Price & Mix effect accounted for 2.7% of the growth. Strong sales growth experienced across all key product categories.
Distribution drive helped achieved higher sales growth, with particular focus for bakery expansion in Gulf and new/improved distribution facilities. In addition, lean management program across the full supply chain and stock replenishment program were introduced to achieved higher product penetration and lower wastage. Manufacturing efficiency program helped further available capacity across major product lines, assisted by state of the art line extention of bread line. Further the commercial start of baby food manufacturing plant, the commissioning of poultry processing plant and expansion of Al-Badiya Farm were the key milestones during the year. Procurement & operational initiatives, along with commodity hedging, helped manage operating margin. Staff strength stood at 28.5K, an increase of 28% yoy. Staff strength accounted for part of the increase of overhead growth, including higher statutory charges, which is running in line with capacity expansion but behind volume and revenue growth. Within KSA, Almarai ranking still stands at high end of green band in Nitaqat. IDJ consolidation effect accounted for 7.7% of the full year growth. High double digit organic growth experienced across all IDJ entities, especially Beyti. Most controls & processes are updated with Almarai systems and this process will continue in 2013.
Lead the innovation efforts in our selected markets by launching 33 news products during the year
Almarai Company
2012 Q4 Earnings Presentation
5
Strong pipeline of innovation throughout 2012
Almarai Company
2012 Q4 Earnings Presentation
6
Sales Highlights
Sales Growth – Geography mix Full year 2012
Full year 2011 All Ot hers 1% GCC 28 %
GCC 26%
KSA 67%
KSA 71%
6.7
KSA
5.7 2.6
GCC All Others Almarai Group
All Ot hers 7%
17. 6%
17.1 %
2.2 0 .7
584 %
0 .1
9.9 8 .0
2011 Rev in B SAR
24.3 %
2012 Rev in B SAR %
Almarai Company
2012 Q4 Earnings Presentation
Growth 8
Sales Analysis by Product & Region Sales by Country - YTD Q4 2012
Sales by Product YT D Q 4
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 12
4,0 62.1 1,0 16.2 1,243.2 1,60 1.8 1,290 .6 50 4.4 115.3 49.4 9 ,8 8 3 .0
Qatar 4.2%
2 0 11 % chang e 3,475.7 16.9% 761.1 33.5% 8 8 8 .1 40 .0 % 1,446.6 10 .7% 966.4 33.6% 319.2 58 .0 % 72.6 58 .8 % 21.2 132.8 % 7,9 5 1.0 2 4 .3 %
Bahrain 2.0%
Oman 5.2%
UAE 9.8%
Egypt 3.3%
Jordan 1.9% Export / Others 1.4%
Kuwait 4.9%
KSA 67.3%
Participation vs Growth – YTD Q4 2012 Participation YTD Q4 2012
Poultry
Growth (YTD Q4 2012 v YTD Q4 2011)
5.1%
Long-Life Dairy
58.0%
10.3% 33.5%
Fruit Juice
12.6%
40.0%
Bakery
13.1%
33.6%
Cheese & Butter
16.2%
10.7%
Fresh Dairy
41.1% 0%
Almarai Company
40% 10%
30% 20% 20%
30%10%
16.9%
40%0%
10% 50%
2012 Q4 Earnings Presentation
20% 60%
30% 70%
40%80%
90%
9
Statement of Income
Statement of Income – Full Year 2012 20 12
SAR m illion Net Sales Cost of sales Gross Profit Selling and Distribution Expenses General and Administration Expenses EBIT Share of Results of Associates
7,9 51.0 (4,954.5)
24 .3% 28 .6%
3,511.1 (1,616.7) (221.4)
2,9 9 6 .5 (1,213.2) (265.7)
17.2% 33.3% (16.7%)
1,6 72.9 (24.6)
1,517.6 (42.3) (160 .2) (135.0 )
10 .2% (41.9%) n.a 16.7%
1,18 0 .1
26 .3%
(157.5)
Incom e from Main and Continuing Operations Zakat and Income Tax
Change
9 ,8 8 3.0 (6,371.9)
Im pairm ent Loss Bank Charges
Full Year 20 11
1,4 9 0 .9 (50 .9)
(33.2)
53.6%
Net incom e before Minority Interest Minority Interest
1,4 39 .9 0 .7
1,14 6 .9 (7.4)
25.5% (10 9.7%)
Net Incom e
1,4 4 0 .6
1,139 .5
26 .4 %
3.6 0
2.8 5
Earnings Per Share
Almarai Company
2012 Q4 Earnings Presentation
11
Evolution of key financial metrics - during the year 2012 Net Sales Gross Profit EBIT DA EBIT Net Incom e EPS
Q1
Q2
20 12 Q3
2,0 40 .3 70 7.3 447.5 292.5 242.1 0 .6
2,524.1 921.7 60 6.8 434.6 379.5 0 .9
2,673.0 1,0 12.2 699.3 50 8 .6 450 .0 1.1
Full Year
2,645.5 8 69.9 633.5 437.3 369.0 0 .9
9,8 8 3.0 3,511.1 2,38 7.1 1,672.9 1,440 .6 3.6
20 12 Growth rate Q2 Q3 Q4
Q1 Net Sales Gross Profit EBIT DA EBIT Net Incom e EPS
Q4
17.0 % 11.5% 11.6% 0 .3% 2.9% 2.9%
25.4% 18 .7% 15.7% 7.1% 8 .7% 8 .7%
27.0 % 16.2% 13.9% 6.6% 4.7% 4.7%
26.6% 20 .2% 27.3% 27.4% 29.2% 29.2%
Full Year
24.3% 16.8 % 17.2% 10 .2% 26.4% * 26.4% *
* The full year growth includes the effect of Zain impairment of 160.2M SAR in 2011
Almarai Company
2012 Q4 Earnings Presentation
12
Segment Reporting SAR M illion YTD Q 4 20 12 Sales Third Part y Sales Net Depreciat ion Income/(loss) before Minorit y Int erest Tot al Asset s Tot al Liabilit ies
D airy & Juice
Bakery
Poult ry
Arable and H ort icult ure
O t her Act ivit ies
Alm arai Consolidat ed
7,98 8 .4 7,972.7 (48 1.3)
1,290 .6 1,290 .6 (114.2)
50 4.4 50 4.4 (50 .3)
38 6.0 115.3 (68 .3)
0 .0 0 .0 0 .0
10 ,169.4 9,8 8 3.0 (714.2)
1,371.8
171.8
(96.8 )
30 .9
(37.8 )
1,439.9
11,0 47.0 (10 ,0 50 .0 )
2,0 0 2.5 (233.5)
3,728 .6 (28 7.5)
1,736.2 (243.7)
1,0 0 4.4 (533.0 )
19,518 .6 (11,347.7)
Ret urn on Sales Growt h versus Q4 YTD 20 11 - Third Part y Sales
17.2%
13.3%
(19.2%)
26.8 %
n.a.
14.6%
20 .9%
33.6%
58 .0 %
58 .8 %
n.a.
24.3%
- Income before Minorit y Int erest
13.9%
45.6%
n.a.
(41.4%)
n.a.
25.5%
2,10 7.7 2,10 2.4 (134.1)
369.3 369.3 (31.3)
162.5 162.5 (13.6)
97.4 11.4 (17.3)
0 .0 0 .0 0 .0
2,736.9 2,645.5 (196.2)
366.0
61.5
(32.8 )
(12.9)
(9.4)
372.4
Q 4 20 12 Sales Third Part y Sales Net Depreciat ion Income/(loss) before Minorit y Int erest Ret urn on Sales Growt h versus Q4 20 11 - Third Part y Sales
17.4%
16.6%
(20 .2%)
(113.4%)
n.a.
14.1%
24.5%
33.1%
64.0 %
(53.1%)
n.a.
26.6%
- Income before Minorit y Int erest
41.5%
10 2.3%
47.7%
(136.7%)
(44.0 %)
30 .5%
Almarai Company
2012 Q4 Earnings Presentation
13
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%
9,883
21.1%
19.4%
19.1%
CAGR 2006 – 2012: 23.7% (w/o impact of acquisitions 17.8%) Revenues
7,951 6,931
16.9%
5,869
EBIT %
5,030
EBITDA % 3,770 2,757
2006
2007
2008
2009
2010
2011
2012
• After excluding the impact of IDJ consolidation, Net Operating income % for 2012 is revised to 17.9%.
Almarai Company
2012 Q4 Earnings Presentation
15
Quarterly Performance – Net Income 2012 versus 2011 500
Q3 = 4.7% 450
Q4 = 29.2%
Q2 = 8.7%
400 350
3 6 9.0 28 5.5
28 3.5
24 8 .8
219 .2
19 3.1
13 0 .2
4 50 .0
4 29 .7
4 24 .5
3 6 3.4
29 3 .7
18 6.1
122.6
3 79.5
3 4 9.3
28 7.1
23 5.2
16 5.3
23 5.2
24 2.1
121.8
122.8
50
9 0 .6
100
19 7.4
150
23 4 .1
200
3 4 3.1
Q1 = 2.9%
250
16 2.2
SAR M illion
300
0
16 0 .2m
= Im pairment Loss on Zain Investment
Almarai Company
2012 Q4 Earnings Presentation
16
Cash Flows
Cash Flow Statement (Full year 2012) 400
3,000 2,384
300
SAR Million
Strong revenue growth resulted in positive operating cash flow….
2,500
200 264
100
2,000
0
(97)
(100)
(200)
1,500
(266) (449)
989
(300)
(548)
(400) (500)
383
(600)
SAR M illion From Operating Activities Used in Investing Activities Cashflow Av'ble for Dist'n From Financing Activities Increase/(Decrease) in Cash Cash at beginning of period Cash at end of period
Almarai Company
Q 4 YTD 20 12 20 11 2,38 4 1,924 (2,933) (3,237) (548 ) (1,313) 694 1,345 145 31 272 241 4 17 272
2012 Q4 Earnings Presentation
486 Free Cash Flow
526 Operating Cash Flow
1,000
500 -
….but additional capex investment especially for poultry (1.8B) resulted in negative free cash flow of 0.5B
18
Cash Flow Bridge 1,0 0 0
2,3 8 4
(2,9 37)
20 6 Sukuk Loans Issues / Others
(512) Capex
4
272
Cash Dec 20 11
Almarai Company
Dividend
Operating Cash Flow
+ SAR 145 m
2012 Q4 Earnings Presentation
4 17
Investment in Subsidiary Cash Dec 20 12
19
Balance Sheet
Balance Sheet S AR M illion
3 1.12.12
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
3 1.12.11
932 90 1 13,416 15,249 1,335
805 8 18 10 ,50 8 12,131 8 21
295
90 7
16,8 8 0
13,8 59
Net Debt Employ ee Terminat ion Benefit s Deferred Tax (Net ) Tot al Equit y Net Capit al Employ ed
8 ,30 5 28 7 116 8 ,171 16,8 8 0
6,749 243 88 6,778 13,8 59
Net Debt t o Equit y Rat io
10 1.6%
99.6%
Almarai Company
2012 Q4 Earnings Presentation
21
Net Debt 9 ,0 0 0 8 ,0 0 0
2.8 x
in m illion
7,0 0 0 6 ,0 0 0
350 %
3 .2x
2.3 x
2.3 x
2.3 x
30 0 % 250 %
2.2x
2.0 x 20 0 %
5,0 0 0
4 ,0 0 0
150 %
3 ,0 0 0 2,0 0 0 1,0 0 0
69%
10 0 %
96%
8 1%
73 %
10 2%
76 %
10 0 %
50 % 1,3 15
2,4 6 3
3 ,4 9 9
3 ,9 51
4 ,6 79
6 ,74 9
8 ,3 0 5
0
0% 20 0 6
20 0 7
20 0 8 N e t Debt
20 0 9 N e t Debt / Equity Ratio
20 10
20 11
20 12
N e t Debt / EBITDA
Net Averge Debt to EBITDA by Quarter
3.3x 3.0 x
Almarai Company
2012 Q4 Earnings Presentation
3.3x 3.2x
22
Debt Profile highlights balanced approach for funding…. 2.5
Debt Maturity by Age and Type Islamic Bonds
2.0
Govt / Semi Govt Inst. 1.0, 12%
SAR Billion
Banks 1.5 1.9, 22%
1.0
5.8, 66%
0.5
0.0 2013
Almarai Company
2014
2015
2016
2017
2012 Q4 Earnings Presentation
2018 & Beyond
23
Capital Expenditure
Capex spend in line with Guidance…
Capex spend of 3.1B SAR in line with earlier forecast provided and on track for our 5 year projection. Poultry capex spend for the year amounted to 1.8B SAR. Poultry plant started commissioning late in Q4 and is expected to be in full swing by mid Q1.
General sales expansion accounted for 0.4B SAR driven by expansion in depot and sales van. It also included fleet expansion in long haul reefers. Manufacturing and Farming capex, including 0.1B for baby food plant, accounted for 0.5B SAR for the year 2012. Replacement and other accounted for 0.4B SAR.
Almarai Company
capex
including
IDJ,
2012 Q4 Earnings Presentation
25
Key Share Data Key Statistics for Almarai (19 Jan 2013)
300%
250%
200%
Current P/E Ratio (ttm) Estimated P/E(12/2012) Earnings Per Share (SAR) (ttm) Market Cap (M SAR) Shares Outstanding (M) 30 Day Average Volume Dividend Indicated Gross Yield Cash Dividend (SAR) Last Dividend 5 Year Dividend Growth
21.7 18.4 3.0 25,998 400.0 286,033 2.0% 1.3 04-03-12 17.6%
150%
100%
50%
0%
Almarai
Almarai Company
TASI
2012 Q4 Earnings Presentation
26
Q&A
Almarai Company
2012 Q4 Earnings Presentation
27
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]
