Update on Five Year Plan - Almarai
Almarai Company 2014 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
2014 Q2 Earnings Presentation
2
Business Highlights
Key Highlights – Q2 2014 SAR Million
Sales 2013 Revenue
2014
2nd Quarter 2013 Growth
2014
1st Half 2013
Growth
3,287
2,874
14.4%
6,005
5,285
13.6%
EBIT
507
484
4.9%
818
785
4.2%
Net Income
433
398
8.8%
707
653
8.2%
Operating Cashflow
735
878
-16.3%
1,311
1,019
28.7%
Capital Expenditure
739
799
-7.5%
1,683
1,566
7.5%
36 K
31 K
17.8%
Net Debt
8,994
9,570
-6.0%
Net Debt to Equity
81.9%
115.6%
-29.1%
EBITDA (rolling 12 months)
2,836
2,569
10.4%
3.0
3.5
-13.0%
SAR 5.3 B
Number of Employees
Net Debt to EBITDA
Almarai Company
2014 Q2 Earnings Presentation
4
Sales Highlights
Sales Analysis by Product – 6 months By Product 2013
10%
10%
7% 2%
L ong-Life Dairy 0.5 Poultry 0.4
13% Fr uit Juice 0.7
13%
By Product 2014
O ther Sales 0.1
Fr uit Juice 0.8
13%
SAR 5.3 B
Ba kery 0.7
13%
O ther Sales 0.1
40%
40% 15%
Cheese & Butter 0.8
Almarai Company
1%
SAR 6.0 B
Ba kery 0.8
Fr esh Dairy 2 .1
8%
L ong-Life Dairy 0.6 Poultry 0.5
15%
Fr esh Dairy 2 .4
Cheese & Butter 0.9
2014 Q2 Earnings Presentation
6
Growth Driven by Poultry, Long-Life and Juice – 6 months Revenue in SAR Million
Growth 2013 v 2014
7,000 6,000
6,005 5,285
Fresh Dairy ( YoY +14%)
Cheese & Butter ( YoY +12%)
5,000
Bakery ( YoY +9%)
4,000
Fruit Juice ( YoY +15%)
3,000
Long Life ( YoY +16%)
Poultry
2,000
( YoY +26%)
Other Sales
1,000
( YoY -1%)
Total
-
( YoY +14%)
2013
Almarai Company
% of Total Growth
289
40%
95
13%
62
9%
98
14%
81
11%
97
13%
(1)
0%
721
100%
2014
2014 Q2 Earnings Presentation
7
Sales Analysis by Country – 6 months By Geography 2013 2% Ba hrain 0.1 4% 5%Q4% a tar E gypt 3% 3% 0.2 5% K uwait 0.2 Jor dan 0.3 E xport / Others 9%
0.1
O ma n 0.3
By Geography 2014
hrain 5% 5% 2% Ba0.1 5% Qa tar E gypt 5% K uwait 0.3 0.3 3% 2% E xport / Oth
0.1
9%
UAE 0.5
0.1
UAE 0.6
SAR 5.3 B
SAR 6.0 B
65%
64%
K SA 3.5
Almarai Company
Jor dan 0.2
0.3 Oma n 0.3
K SA 3.9
2014 Q2 Earnings Presentation
8
Sales Analysis by Country – 6 months Revenue in SAR Million KSA
7,000
( YoY +12%)
6,005 6,000
UAE ( YoY +17%)
Oman
5,285
( YoY +19%)
5,000
Kuwait ( YoY +11%)
4,000
Qatar ( YoY +28%)
Egypt
3,000
( YoY +25%)
Bahrain ( Yoy +15%)
2,000
Jordan ( YoY +9%)
1,000
Others ( YoY -1%)
Total
-
2013
Almarai Company
2014
( YoY +14%)
2014 Q2 Earnings Presentation
Growth 2013 v 2014
% of Total Growth
409
58%
83
11%
52
7%
30
4%
63
9%
58
8%
16
2%
11
2%
(1)
0%
721
100%
9
Sales growth achieved via our expanding footprints across the region…… and resources across the globe… Capital Investment of 1.3 B SAR in Egypt includes setting up a new juice factory, expanding existing facilities, increasing Beyti's fleet of vehicles and sales network, and creating a new dairy farm.
Legend:
Farmland in Arizona: • Acquisition costs of 178m SAR for 9,834 acres. • To secure our supply of the highest quality alfalfa hay. • This includes investment in bailing system and logistics & transportation equipments.
Milking Parlours Poultry Farming Arable & Horticulture Farms Manufacturing Plant Distribution Center
1st shipment in Q1
Almarai Company
2014 Q2 Earnings Presentation
10
Financial Performance
Strong pipeline of innovation continues in 2014
Almarai Company
2014 Q2 Earnings Presentation
12
Segment Reporting SAR Million
Dairy & Juice
Bakery
Poultry
Other Activities
Almarai Consolidated
1st H al f 20 14 Sales
4,692.9
772.6
461.5
183.0
6,109.9
Third Party Sales
4,673.3
772.6
461.5
98.1
6,005.4
Depreciation
(472.4)
(67.5)
(138.8)
(46.2)
(725.0)
Income / (loss) before NCI
897.9
66.9
(236.4)
(15.9)
712.6
14,387.9
1,967.2
5,040.1
2,500.2
23,895.3
19.2%
8.7%
(51.2%)
(16.2%)
11.9%
13.7% 26.8% *
8.8% 2.1% *
26.5% 72.4%
(1.2%) n.a.
13.6% 10.2%
Total Assets Return on Sales Growth versus 1st Half 2013 - Third Party Sales - Income / (loss) before NCI Q 2 20 14 Sales
2,557.8
399.3
250.4
162.7
3,370.1
Third Party Sales
2,547.7
399.3
250.4
89.2
3,286.5
Depreciation
(238.4)
(33.9)
(73.8)
(23.9)
(370.0)
Income / (loss) before NCI
532.0
45.4
(103.4)
(35.1)
438.8
Return on Sales
20.9%
11.4%
(41.3%)
(39.3%)
13.4%
15.3% 20.1% *
8.1% (1.0%) *
23.5% 13.6%
n.a. n.a.
14.4% 10.3%
Growth versus Q2 2013 - Third Party Sales - Income / (loss) before NCI
* Income/(loss) before NCI is calculated on proforma basis based on revised cost allocation done in Q3, 2013
Almarai Company
2014 Q2 Earnings Presentation
13
Statement of Income – Q2 2014 SAR million
2014
2nd Quarter 2013 Change
2014
1st Half 2013
Change
Sales Cost of sales
3,286.5 (2,148.1)
2,873.9 (1,839.4)
14.4% 16.8%
6,005.4 (3,955.7)
5,284.9 (3,422.6)
13.6% 15.6%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
1,138.4 (527.1) (103.8)
1,034.5 (457.4) (93.1)
10.0% 15.2% 11.5%
2,049.8 (1,039.3) (192.7)
1,862.3 (907.5) (170.0)
10.1% 14.5% 13.3%
Exchange and Currency Gains/(Losses)
507.5 (2.7) (68.3) 20.4
484.0 (15.8) (64.5) 6.4
4.9% (82.9%) 5.8% 218.6%
817.9 18.4 (124.1) 23.7
784.8 (21.8) (112.0) 15.1
4.2% (184.4%) 10.9% 57.1%
Income from Main Operations Zakat and Foreign IncomeTax
456.9 (18.1)
410.0 (12.1)
11.4% 50.1%
735.8 (23.2)
666.1 (19.7)
10.5% 18.2%
438.8
398.0
10.3%
712.6
646.5
10.2%
EBIT Share of Results of Associates
Funding Costs
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
(5.5)
0.3
n.a
(5.7)
6.9
n.a
433.3
398.2
8.8%
706.9
653.3
8.2%
0.71
0.67
6.0%
1.14
1.09
4.6%
13.2%
13.9%
11.8%
12.4%
2014 Q2 Earnings Presentation
14
Balance Sheet & Cash Flows
Cash Flow Bridge – Rolling 12 months
1,700
(222)
(3,187)
Loans Issues / Payments / Charges
2,878 Equity Issued Perpetual Sukuk
Capex / Biological Assets
421
Ca sh at 30 June 2013
Almarai Company
(598)
Operating Cash Flow
(SAR 642 m)
2014 Q2 Earnings Presentation
71 Dividend
1,063
Others
Ca sh at 30 June 2014
16
Capex spend in line with 5YP guidance…
Capex spend for 1st half of 2014 was 1.5B SAR. Our current year Capex guidance remains at 3.03.2B SAR which is in line with our 5 year capital expenditure guidance of 15.7B SAR.
Manufacturing and Farming spent Capex of ~0.6B SAR for various capacity expansion projects.
Sales depot and logistics expansion accounted for ~0.4B SAR.
Poultry capex spend for the year reached ~ 0.3B SAR. The key highlight for the quarter is the availability of 3rd line and its additional expansion.
Replacement and other capex including IDJ and US land acquisition, accounted for another ~0.2B SAR.
Almarai Company
2014 Q2 Earnings Presentation
17
Balance Sheet Assets 20 ,0 00 1,3 3 1 945
1,796 1,0 49
Bi ological Assets
SAR Million
P roperty, Plant and Equipment
14,281 Intangible Assets Goodwill
1,3 3 5 3 71 3 0 J une 2013
1,3 50 3 41 3 0 J une 2014
Investment & Financial Assets, D eferred C harges and D erivatives
17%
69%
17% 20%
64%
20 0 9 20 0 8 0
5,0 0 0
N et Debt
SAR Million
9,570 3 73
D eferred Tax (Net) 10 ,975 8 ,275
10 ,000
Almarai Company
15,0 00
20 ,000
36%
25,0 00
36%
49%
0
18%
39%
Equity
49%
44%
16% 19%
39%
43%
20 0 9
17%
38%
42%
20 12
20 0 8
Tot al Equity 3 0 J une 2013
Other Long Term Assets
46%
20 10
-
Current Assets
16%
46%
20 14
20 11
118
3 10 10 9
5,0 0 0
Fixed Assets
14%
SAR Million
20 13
Empl oyee Benefits 10 ,000
9%
Equity & Liabilites
8 ,994 15,0 00
8%
11%
22% 13%
65%
Equity & Liabilities 20 ,0 00
18%
72%
20 11
7%
23%
73%
20 10
5,0 0 0
-
69%
20 13 20 12
15,923
22%
71%
20 14
15,0 00
10 ,000
Assets
N et Operating Working C apital
38% 40% 5,0 0 0
15%
Non Current Liabilities
13%
Current Liabilities
16% 10 ,000
15,0 00
20 ,000
25,0 00
SAR Million
3 0 J une 2014
2014 Q2 Earnings Presentation
18
Net Debt 10 ,000
3 .1x
9,0 00
SAR million
2.3 x
2.3 x
3 50 %
3 0 0%
2.8x
8,0 00 7,0 00
3 .0 x
3 .0 x
250 %
2.2x
6,0 00
20 0 %
5,0 0 0 150 %
4,0 00 3 ,0 00
98%
94% 72%
10 1% 76%
74%
82%
2,0 00 1,0 00 0
50 % 3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
8,994
20 0 8
20 0 9
20 10
20 11
20 12
20 13
Last 12 M on ths
N et Debt
Almarai Company
10 0 %
N et Debt / Equity R atio
2014 Q2 Earnings Presentation
0%
N et Debt / EBITDA
19
Debt Profile highlights balanced approach for funding…. 2.5
Debt Maturity by Age and Type Isl amic Bonds
2.0
S AR Million
Govt / Semi Govt Inst.
2 , 23 %
Ban ks
1.5
1 , 15%
1.0
6 , 62%
0 .5
0 .0 5y r
20
Trend charts
Analysts expectations for Q 2 2014 Revenue 3 ,50 0.0
3 ,0 00.0 2,50 0.0 3 ,28 6.5
3 ,235.8
Act ual Results
Average Expectations
2,0 00.0 1,50 0.0
1,0 00.0
Net Income 450 .0 40 0 .0 3 50 .0 3 0 0.0 43 3 .3
43 0 .6
Act ual Results
Average Expectations
250 .0 20 0 .0 150 .0 10 0 .0
Almarai Company
2014 Q2 Earnings Presentation
22
Quarterly Performance – Net Income 2014 versus 2013 Q2 = 8.8%
450
350
*
400
Q1 = 7 .2%
50
3 73 .3
3 69.0
285.5
283 .5
248.8
219.2
475.6
450 .0
429.7
424.5
3 63 .4
293 .7
43 3 .3
3 98 .2
3 79.5
3 49.3
287.1
23 5.2
273 .6
255.1
242.1
23 4.1
100
197.4
150
23 5.2
200
3 43 .1
250
162.2
SAR Million
300
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2014 Q2 Earnings Presentation
23
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7%
27.2% 25.6%
25.3%
SAR Million
21.0%
24.2%
21.8%
11,219
21.1% 19.1%
CAGR 2008 – 2014: 17.0% (w/o impact of acquisitions 11.8%) Revenues
24.4%
11,940 23.7%
9,883 16.9%
16.0%
15.3%
7,951
EBIT % to Revenues
EBITDA % to Revenues
6,931
5,869 5,030
2008
Almarai Company
2009
2010
2011
2014 Q2 Earnings Presentation
2012
2013
Last 12 Months
24
Key Share Data Key S tati sti cs for Al marai (3 0 Ju n e 20 14) 40 0 %
3 50 %
3 0 0%
250 %
S h are P ri ce (S AR ) C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 14) Earn i n gs P er S h are (S AR ) (ttm) M ark et C ap (M S AR ) S h ares O u tstan di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cated Gross Yi el d C ash D i vi den d (S AR ) D i vi den d Ex -D ate 5 Year D i vi den d Growth
70 .0 1 27.8 23 .8 2.5 42,0 0 6.0 60 0 .0 667,767.0 1.4% 1.0 4/3 /20 14 8.3 %
30%
Year to date total shareholder's return since l i sting
2 5%
21%
2 0% 15 % 10%
20 0 %
150 %
10 0 %
50 %
0%
Almarai
Almarai Company
TASI
2014 Q2 Earnings Presentation
25
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
2014 Q2 Earnings Presentation
2
Business Highlights
Key Highlights – Q2 2014 SAR Million
Sales 2013 Revenue
2014
2nd Quarter 2013 Growth
2014
1st Half 2013
Growth
3,287
2,874
14.4%
6,005
5,285
13.6%
EBIT
507
484
4.9%
818
785
4.2%
Net Income
433
398
8.8%
707
653
8.2%
Operating Cashflow
735
878
-16.3%
1,311
1,019
28.7%
Capital Expenditure
739
799
-7.5%
1,683
1,566
7.5%
36 K
31 K
17.8%
Net Debt
8,994
9,570
-6.0%
Net Debt to Equity
81.9%
115.6%
-29.1%
EBITDA (rolling 12 months)
2,836
2,569
10.4%
3.0
3.5
-13.0%
SAR 5.3 B
Number of Employees
Net Debt to EBITDA
Almarai Company
2014 Q2 Earnings Presentation
4
Sales Highlights
Sales Analysis by Product – 6 months By Product 2013
10%
10%
7% 2%
L ong-Life Dairy 0.5 Poultry 0.4
13% Fr uit Juice 0.7
13%
By Product 2014
O ther Sales 0.1
Fr uit Juice 0.8
13%
SAR 5.3 B
Ba kery 0.7
13%
O ther Sales 0.1
40%
40% 15%
Cheese & Butter 0.8
Almarai Company
1%
SAR 6.0 B
Ba kery 0.8
Fr esh Dairy 2 .1
8%
L ong-Life Dairy 0.6 Poultry 0.5
15%
Fr esh Dairy 2 .4
Cheese & Butter 0.9
2014 Q2 Earnings Presentation
6
Growth Driven by Poultry, Long-Life and Juice – 6 months Revenue in SAR Million
Growth 2013 v 2014
7,000 6,000
6,005 5,285
Fresh Dairy ( YoY +14%)
Cheese & Butter ( YoY +12%)
5,000
Bakery ( YoY +9%)
4,000
Fruit Juice ( YoY +15%)
3,000
Long Life ( YoY +16%)
Poultry
2,000
( YoY +26%)
Other Sales
1,000
( YoY -1%)
Total
-
( YoY +14%)
2013
Almarai Company
% of Total Growth
289
40%
95
13%
62
9%
98
14%
81
11%
97
13%
(1)
0%
721
100%
2014
2014 Q2 Earnings Presentation
7
Sales Analysis by Country – 6 months By Geography 2013 2% Ba hrain 0.1 4% 5%Q4% a tar E gypt 3% 3% 0.2 5% K uwait 0.2 Jor dan 0.3 E xport / Others 9%
0.1
O ma n 0.3
By Geography 2014
hrain 5% 5% 2% Ba0.1 5% Qa tar E gypt 5% K uwait 0.3 0.3 3% 2% E xport / Oth
0.1
9%
UAE 0.5
0.1
UAE 0.6
SAR 5.3 B
SAR 6.0 B
65%
64%
K SA 3.5
Almarai Company
Jor dan 0.2
0.3 Oma n 0.3
K SA 3.9
2014 Q2 Earnings Presentation
8
Sales Analysis by Country – 6 months Revenue in SAR Million KSA
7,000
( YoY +12%)
6,005 6,000
UAE ( YoY +17%)
Oman
5,285
( YoY +19%)
5,000
Kuwait ( YoY +11%)
4,000
Qatar ( YoY +28%)
Egypt
3,000
( YoY +25%)
Bahrain ( Yoy +15%)
2,000
Jordan ( YoY +9%)
1,000
Others ( YoY -1%)
Total
-
2013
Almarai Company
2014
( YoY +14%)
2014 Q2 Earnings Presentation
Growth 2013 v 2014
% of Total Growth
409
58%
83
11%
52
7%
30
4%
63
9%
58
8%
16
2%
11
2%
(1)
0%
721
100%
9
Sales growth achieved via our expanding footprints across the region…… and resources across the globe… Capital Investment of 1.3 B SAR in Egypt includes setting up a new juice factory, expanding existing facilities, increasing Beyti's fleet of vehicles and sales network, and creating a new dairy farm.
Legend:
Farmland in Arizona: • Acquisition costs of 178m SAR for 9,834 acres. • To secure our supply of the highest quality alfalfa hay. • This includes investment in bailing system and logistics & transportation equipments.
Milking Parlours Poultry Farming Arable & Horticulture Farms Manufacturing Plant Distribution Center
1st shipment in Q1
Almarai Company
2014 Q2 Earnings Presentation
10
Financial Performance
Strong pipeline of innovation continues in 2014
Almarai Company
2014 Q2 Earnings Presentation
12
Segment Reporting SAR Million
Dairy & Juice
Bakery
Poultry
Other Activities
Almarai Consolidated
1st H al f 20 14 Sales
4,692.9
772.6
461.5
183.0
6,109.9
Third Party Sales
4,673.3
772.6
461.5
98.1
6,005.4
Depreciation
(472.4)
(67.5)
(138.8)
(46.2)
(725.0)
Income / (loss) before NCI
897.9
66.9
(236.4)
(15.9)
712.6
14,387.9
1,967.2
5,040.1
2,500.2
23,895.3
19.2%
8.7%
(51.2%)
(16.2%)
11.9%
13.7% 26.8% *
8.8% 2.1% *
26.5% 72.4%
(1.2%) n.a.
13.6% 10.2%
Total Assets Return on Sales Growth versus 1st Half 2013 - Third Party Sales - Income / (loss) before NCI Q 2 20 14 Sales
2,557.8
399.3
250.4
162.7
3,370.1
Third Party Sales
2,547.7
399.3
250.4
89.2
3,286.5
Depreciation
(238.4)
(33.9)
(73.8)
(23.9)
(370.0)
Income / (loss) before NCI
532.0
45.4
(103.4)
(35.1)
438.8
Return on Sales
20.9%
11.4%
(41.3%)
(39.3%)
13.4%
15.3% 20.1% *
8.1% (1.0%) *
23.5% 13.6%
n.a. n.a.
14.4% 10.3%
Growth versus Q2 2013 - Third Party Sales - Income / (loss) before NCI
* Income/(loss) before NCI is calculated on proforma basis based on revised cost allocation done in Q3, 2013
Almarai Company
2014 Q2 Earnings Presentation
13
Statement of Income – Q2 2014 SAR million
2014
2nd Quarter 2013 Change
2014
1st Half 2013
Change
Sales Cost of sales
3,286.5 (2,148.1)
2,873.9 (1,839.4)
14.4% 16.8%
6,005.4 (3,955.7)
5,284.9 (3,422.6)
13.6% 15.6%
Gross Profit Selling and Distribution Expenses General and Administration Expenses
1,138.4 (527.1) (103.8)
1,034.5 (457.4) (93.1)
10.0% 15.2% 11.5%
2,049.8 (1,039.3) (192.7)
1,862.3 (907.5) (170.0)
10.1% 14.5% 13.3%
Exchange and Currency Gains/(Losses)
507.5 (2.7) (68.3) 20.4
484.0 (15.8) (64.5) 6.4
4.9% (82.9%) 5.8% 218.6%
817.9 18.4 (124.1) 23.7
784.8 (21.8) (112.0) 15.1
4.2% (184.4%) 10.9% 57.1%
Income from Main Operations Zakat and Foreign IncomeTax
456.9 (18.1)
410.0 (12.1)
11.4% 50.1%
735.8 (23.2)
666.1 (19.7)
10.5% 18.2%
438.8
398.0
10.3%
712.6
646.5
10.2%
EBIT Share of Results of Associates
Funding Costs
Income before Non Controlling Interest Non Controlling Interest Net Income Earnings Per Share
Net Income %
Almarai Company
(5.5)
0.3
n.a
(5.7)
6.9
n.a
433.3
398.2
8.8%
706.9
653.3
8.2%
0.71
0.67
6.0%
1.14
1.09
4.6%
13.2%
13.9%
11.8%
12.4%
2014 Q2 Earnings Presentation
14
Balance Sheet & Cash Flows
Cash Flow Bridge – Rolling 12 months
1,700
(222)
(3,187)
Loans Issues / Payments / Charges
2,878 Equity Issued Perpetual Sukuk
Capex / Biological Assets
421
Ca sh at 30 June 2013
Almarai Company
(598)
Operating Cash Flow
(SAR 642 m)
2014 Q2 Earnings Presentation
71 Dividend
1,063
Others
Ca sh at 30 June 2014
16
Capex spend in line with 5YP guidance…
Capex spend for 1st half of 2014 was 1.5B SAR. Our current year Capex guidance remains at 3.03.2B SAR which is in line with our 5 year capital expenditure guidance of 15.7B SAR.
Manufacturing and Farming spent Capex of ~0.6B SAR for various capacity expansion projects.
Sales depot and logistics expansion accounted for ~0.4B SAR.
Poultry capex spend for the year reached ~ 0.3B SAR. The key highlight for the quarter is the availability of 3rd line and its additional expansion.
Replacement and other capex including IDJ and US land acquisition, accounted for another ~0.2B SAR.
Almarai Company
2014 Q2 Earnings Presentation
17
Balance Sheet Assets 20 ,0 00 1,3 3 1 945
1,796 1,0 49
Bi ological Assets
SAR Million
P roperty, Plant and Equipment
14,281 Intangible Assets Goodwill
1,3 3 5 3 71 3 0 J une 2013
1,3 50 3 41 3 0 J une 2014
Investment & Financial Assets, D eferred C harges and D erivatives
17%
69%
17% 20%
64%
20 0 9 20 0 8 0
5,0 0 0
N et Debt
SAR Million
9,570 3 73
D eferred Tax (Net) 10 ,975 8 ,275
10 ,000
Almarai Company
15,0 00
20 ,000
36%
25,0 00
36%
49%
0
18%
39%
Equity
49%
44%
16% 19%
39%
43%
20 0 9
17%
38%
42%
20 12
20 0 8
Tot al Equity 3 0 J une 2013
Other Long Term Assets
46%
20 10
-
Current Assets
16%
46%
20 14
20 11
118
3 10 10 9
5,0 0 0
Fixed Assets
14%
SAR Million
20 13
Empl oyee Benefits 10 ,000
9%
Equity & Liabilites
8 ,994 15,0 00
8%
11%
22% 13%
65%
Equity & Liabilities 20 ,0 00
18%
72%
20 11
7%
23%
73%
20 10
5,0 0 0
-
69%
20 13 20 12
15,923
22%
71%
20 14
15,0 00
10 ,000
Assets
N et Operating Working C apital
38% 40% 5,0 0 0
15%
Non Current Liabilities
13%
Current Liabilities
16% 10 ,000
15,0 00
20 ,000
25,0 00
SAR Million
3 0 J une 2014
2014 Q2 Earnings Presentation
18
Net Debt 10 ,000
3 .1x
9,0 00
SAR million
2.3 x
2.3 x
3 50 %
3 0 0%
2.8x
8,0 00 7,0 00
3 .0 x
3 .0 x
250 %
2.2x
6,0 00
20 0 %
5,0 0 0 150 %
4,0 00 3 ,0 00
98%
94% 72%
10 1% 76%
74%
82%
2,0 00 1,0 00 0
50 % 3 ,3 98
3 ,869
4,60 6
6,653
8,23 7
8,161
8,994
20 0 8
20 0 9
20 10
20 11
20 12
20 13
Last 12 M on ths
N et Debt
Almarai Company
10 0 %
N et Debt / Equity R atio
2014 Q2 Earnings Presentation
0%
N et Debt / EBITDA
19
Debt Profile highlights balanced approach for funding…. 2.5
Debt Maturity by Age and Type Isl amic Bonds
2.0
S AR Million
Govt / Semi Govt Inst.
2 , 23 %
Ban ks
1.5
1 , 15%
1.0
6 , 62%
0 .5
0 .0 5y r
20
Trend charts
Analysts expectations for Q 2 2014 Revenue 3 ,50 0.0
3 ,0 00.0 2,50 0.0 3 ,28 6.5
3 ,235.8
Act ual Results
Average Expectations
2,0 00.0 1,50 0.0
1,0 00.0
Net Income 450 .0 40 0 .0 3 50 .0 3 0 0.0 43 3 .3
43 0 .6
Act ual Results
Average Expectations
250 .0 20 0 .0 150 .0 10 0 .0
Almarai Company
2014 Q2 Earnings Presentation
22
Quarterly Performance – Net Income 2014 versus 2013 Q2 = 8.8%
450
350
*
400
Q1 = 7 .2%
50
3 73 .3
3 69.0
285.5
283 .5
248.8
219.2
475.6
450 .0
429.7
424.5
3 63 .4
293 .7
43 3 .3
3 98 .2
3 79.5
3 49.3
287.1
23 5.2
273 .6
255.1
242.1
23 4.1
100
197.4
150
23 5.2
200
3 43 .1
250
162.2
SAR Million
300
0
* Q4 income growth is 16.0% after excluding the effect of capital gain of SAR 47.2m in Q4 2012
Almarai Company
2014 Q2 Earnings Presentation
23
Robust revenue growth with challenging – but anticipated – EBITDA & EBIT trend Revenue, EBITDA and EBIT Evolution 26.7%
27.2% 25.6%
25.3%
SAR Million
21.0%
24.2%
21.8%
11,219
21.1% 19.1%
CAGR 2008 – 2014: 17.0% (w/o impact of acquisitions 11.8%) Revenues
24.4%
11,940 23.7%
9,883 16.9%
16.0%
15.3%
7,951
EBIT % to Revenues
EBITDA % to Revenues
6,931
5,869 5,030
2008
Almarai Company
2009
2010
2011
2014 Q2 Earnings Presentation
2012
2013
Last 12 Months
24
Key Share Data Key S tati sti cs for Al marai (3 0 Ju n e 20 14) 40 0 %
3 50 %
3 0 0%
250 %
S h are P ri ce (S AR ) C u rren t P /E R ati o (ttm) Esti mated P /E(12/20 14) Earn i n gs P er S h are (S AR ) (ttm) M ark et C ap (M S AR ) S h ares O u tstan di n g (M ) 3 0 D ay Average V ol u me D i vi den d In di cated Gross Yi el d C ash D i vi den d (S AR ) D i vi den d Ex -D ate 5 Year D i vi den d Growth
70 .0 1 27.8 23 .8 2.5 42,0 0 6.0 60 0 .0 667,767.0 1.4% 1.0 4/3 /20 14 8.3 %
30%
Year to date total shareholder's return since l i sting
2 5%
21%
2 0% 15 % 10%
20 0 %
150 %
10 0 %
50 %
0%
Almarai
Almarai Company
TASI
2014 Q2 Earnings Presentation
25
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]
