Ea r n i n g s
Presentation
April 2017
Disclaimer
Information contained in this presentation is subject to change without prior notice. Its accuracy is not guaranteed and it may not
contain all material information related to the company. Neither SADAFCO nor its associates make any representation regarding,
and assume no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information
contained herein.
Nothing in this presentation shall form the basis of any contract or commitment whatsoever. This presentation is furnished to you
solely for your information. You may not redistribute it to any other person.
This presentation contains forward-looking statements that are made on the basis of current knowledge and assumptions. Various
factors could cause future results, performance or events to differ materially from those mentioned in the presentation.
2
Our Vision, Mission & Values
VISION
To be the Brand of Choice
MISSION
Develop, produce and market a range of
nutritious food propositions for all age
groups and create maximum shareholder
value through teamwork
3
Business Highlights
Sales
6.3%
YoY
Cash Flow
Operating Cash Flows
Net Profit
FY’2016/17 :
SAR1,858mn
FY’2016/17 :
SAR302mn
FY’2015/16 :
SAR1,983mn
FY’2015/16 :
SAR261mn
15.7%
YoY
New Products
Recent Developments
Launched in-line with company’s commitment
to constantly innovate and introduce new
products
 Saudia Shake Factor Ice-cream
Boutiques: offering a combination of Saudia
FY’2016/17 : SAR526mn
FY’2015/16 : SAR363mn
Ice Creams and concept shakes to transform
ice-cream boutique concept; multiple outlets
opened in various cities during the year
Capital Expenditure
FY’2016/17 : SAR97mn
FY’2015/16 : SAR68mn
Jump!
A delicious vitaminenriched blend of
laban and real fruits
Choco Ice-cream
Sandwich
4
Sales & Profitability
Sales
1,549
Gross Profit
SAR mn
1,553
1,983
1,807
SAR mn
800 .00
1,858
80%
70%
700 .00
60%
600 .00
500 .00
400 .00
31%
32%
31%
36%
41%
50%
40%
30%
300 .00
20%
200 .00
475
493
552
709
761
12/13
13/14
14/15
15/16
16/17
100 .00
12/13
13/14
14/15
15/16
16/17
10%
0%
As % of Net Sales
Net Profit
SAR mn
350
28%
300
23%
250
16%
200
150
11%
165
172
141
261
302
12/13
13/14
14/15
15/16
16/17
100
18%
13%
11%
8%
13%
8%
50
0
3%
As % of Net Sales
5
Strong Balance Sheet
Steady Asset Base…
…build by Internally generated funds
SAR mn
1,103
1,138
1,209
SAR mn
1,391
1,642
1,642
1,391
1,103
12/13
1,138
13/14
1,209
14/15
15/16
16/17
297
380
252
215
260
850
923
949
1,094
1,262
12/13
13/14
14/15
15/16
16/17
Shareholders' Equity
Working Capital*
Non Interest bearing Liabilities
SAR mn
450
40%
400
35%
350
24%
25%
30%
21%
300
250
19%
25%
20%
12%
200
15%
150
10%
100
50
378
392
375
371
231
12/13
13/14
14/15
15/16
16/17
0
5%
0%
Working Capital
As % of Net Sales**
Note: *Working Capital calculated as Current Assets net of Current Liabilities.
Current Assets: Accounts receivable + Inventories + Deposits, prepayments & other current assets
Current Liabilities: Accounts payable + Due to related parties + Accrued zakat + Dividend payable +
Accruals & other current liabilities
**Rolling 12-months net sales
6
Cash Flow Summary
Cash Flow Bridge for rolling 12-months as of 31 Mar, 2017
SAR mn
800
97
700
130
600
2
526
500
400
300
544
200
100
246
Free Cash Flow = SAR429mn
0
Cash and Cash
Equivalents
(31 Mar 2016)
Net cash from
operating activities
Purchase of Property,
Plant and Equipment
(PP&E)
Dividends Paid
Others
Cash and Cash
Equivalents
(31 Mar 2017)
Free Cash Flow of SAR 429 million for FY’2016/17
7
Product Portfolio
UHT Milk
 UHT Milk– Whole,
Low Fat, Skimmed,
Gold Milk
 Flavored Milk
 Date Milk
Milk Powder
 Milk Powder – Instant
Cheese Products
Frozen
Tomato Products
 Feta Cheese
 Ice cream
 Ketchup
 Processed Cheese –
Triangles
 French Fries
 Tomato paste
 Butter
Others









Arabic Coffee
Laban & Twist
Jump
Crispy
Cream
Juices–Growing-up
EVAP
Majestique
Soy Drink
8
Shareholding Structure
Shareholding
(as of 19 April 2017)
• Qurain Petrochemicals Industries (QPIC) is the largest shareholder of
SADAFCO
Public &
Others
59.9%
40.1%
• QPIC, incorporated in 2004, is a private sector holding company in the
energy, petrochemical, food and related sectors
• QPIC is an associate of KIPCO group, which is one of the biggest diversified
holding companies in the Middle East and North Africa. KIPCO Group has
assets of around USD 32 billion under management or control
• KIPCO and QPIC both are listed on the Kuwait Stock Exchange
Source: Tadawul Stock Exchange
9
Shareholders’ Returns
Share Price Performance
180
52 Week
Low
157.1
113.0
10
Market Cap (SAR Mn): 4,176
(19 April 2017)
(SAR)
(SAR)
SAR 128.5
SAR 105.0
8
6
SASE Index
SADAFCO
Apr-17
Jan-17
Feb-17
Mar-17
Nov-16
Dec-16
Sep-16
Oct-16
Aug-16
Jun-16
Jul-16
Apr-16
May-16
Feb-16
Mar-16
Jan-16
Nov-15
Dec-15
Sep-15
Oct-15
Aug-15
Jun-15
Jul-15
Apr-15
May-15
Feb-15
Mar-15
0
Jan-15
20
Nov-14
Dec-14
2
Sep-14
Oct-14
60
Aug-14
4
Jun-14
Jul-14
100
Apr-14
May-14
SAR
140
52 Week
High
Trading Volume, Mn Shares
220
SAR mn
Volume (Mn)
Source: Bloomberg; SAR Saudi Riyal; SASE Index (Rebased to SAR 105.0 on 01 April 2014)
Consistent Dividends
SAR per share
4.0
3.5
3.5
Compounded Annual
Return# of
14.5%
over the last 3 years
13/14
14/15
Declared Dividend per share
15/16
Note: #Annualized Return calculated as sum of share price appreciation/depreciation and
dividends paid during the period ending 31 Mar 2017, assuming no reinvestment of dividends
10
Going Forward…
“After two years of exceptional level,
Margins will return to more normal albeit comfortable
industry level, in combination with not yet settled
input costs and market dynamics.
SADAFCO will continue to focus on strengthening
its brand, cost control & operational efficiencies
to maximize value creation for shareholders”
11