Almarai Company...Sales Analysis by Product – Q1 By Product 2017 By Product 2018 Almarai Company 2018 Q1 Earnings Presentation 9 Fresh Dairy 1,305 39% Long-Life Dairy 316 9% Fruit

Almarai Company Interim Results – 1st Quarter 2018

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.

2018 Q1 Earnings Presentation 2 Almarai Company

Macro Environment

Main Events Q1 2018


• Introduction of VAT

• Higher uncertainty amid multiple reforms and macroeconomic changes

• Lower consumer confidence/sentiment and slower market growth, especially within discretionary categories

• Growth in the quarter adversely affected by contraction in export markets

• Good progress made against the strategic objectives set out in Almarai 2025

• Breakeven for infant nutrition segment

• On track for 100% importation of alfalfa feed from 1st January 2019

• Continued cost optimization and efficiency projected to achieve SAR 200M savings for 2018 in response to a

higher cost environment

• Profit Attributable to shareholders increased by 4.8% in Q1 2018 relative to the comparable quarter in 2017

• Improvement of gross margin from 34.8% to 38.8% for the first quarter 2018. Likewise operating margin has

increased to 14.9% from 12.4% in the comparable quarter last year, reflecting strong savings.

• Positive Free Cash Flow of SAR 60 million compared to a negative SAR 290 million Free Cash Flow for the same

period last year, mainly due to reduction in Capital Investments in line with the long term strategy, Almarai 2025.

• Innovation through launch of key new products in new categories driving top-line growth and supporting market

share position

Source: Nielsen Company MAT Feb 18


Almarai Gaining Market Share Despite Declining KSA Food Market

MAT Category

growth (Value)%

Almarai MAT Val.

Shr Change

Almarai Rank

(Value)

PLAIN REGULAR LABAN -12.3% +1.5 1

PLAIN FRESH MILK -8.3% +1.0 1

FLAVORED FRESH MILK -33.8% +1.7 1

UHT MILK -8.7% +1.9 2

ZABADI -6.8% -0.3 1

FRESH GISHTA -14.3% +3.8 1

FRUIT JUICE BOTTLES -23.5% +1.0 1

BUTTER -1.8% -0.9 1

CHEESE JARS -7.9% -2.0 1

CHEESE SLICES -7.8% +2.6 1

CHEESE TRIANGLES -9.8% +7.7 2

FETA CHEESE -9.8% +4.1 1

TOTAL WHIP & COOKG CREAM +5.5% -3.9 1

SLICED BREAD -10.6% -2.7 1

PUFFS -13.5% +1.2 1

CROISSANTS -7.6% +1.5 1

CUP CAKES +20.6% +16.7 1

WHOLE CHICKEN -9.1% -1.3 1

• Almost all of the Dairy and Foods categories are

declining in KSA in MAT Feb 2018 compared to MAT

Feb 2017.

• Despite the categories decline , Almarai gained

share in most of the categories in KSA on MAT basis.

• Most of the categories, Almarai stands at #1 position

in the KSA market.

Business Highlights This is a new slide

called Business

Environment.

2013

SAR 11.2 B +12.4%

2018 Q1 Earnings Presentation Almarai Company

Highlights Net Sales

Profit Attributable to Shareholders

0.3

0.7 0.7 0.5

0.3

-

0.2

0.4

0.6

0.8

Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018

SA

R in

Bil

lio

n

Last 5 Quarters

Employees 44 44

43 43

42

42

42

43

43

44

44

45

Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018

In T

ho

us

an

d

Last 5 Quarters

Operating Income

0.4

0.8 0.8

0.6 0.5

-

0.5

1.0

Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018

SA

R in

Bil

lio

n

Last 5 Quarters

3.4 3.8 3.4 3.4

3.2

2.8

3.0

3.2

3.4

3.6

3.8

Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018

SA

R in

Bil

lio

n

Last 5 Quarters

Free Cash Flow

(0.3)

0.5 0.4

0.7

0.1

(0.5)

-

0.5

1.0

Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018

SA

R in

Bil

lio

n

Last 5 Quarters

Sales Trends

Sales Analysis by Product – Q1 By Product 2017 By Product 2018


Fresh Dairy

1,305

39%Long-Life

Dairy

316

9%

Fruit Juice

335

10%

Cheese,

Butter &

Cream

538

16%

Bakery

469

14%

Poultry

356

10% Other Sales

64

2%

SAR 3,384

MillionFresh Dairy

1,164

36%

Long-Life

Dairy

333

10%

Fruit Juice

321

10%

Cheese,

Butter &

Cream

529

16%

Bakery

416

13%

Poultry

421

13% Other Sales

49

2%

SAR 3,232

Million

-1%

=

=

+3%

-3%

+1%

Sales Analysis by Product – Q1


Growth

2018 vs 2017

% of Total

Growth

Fresh Dairy

( YoY -11% )

(141) (4%)

Cheese, Butter &

Cream

( YoY -2% )

(10) (0%)

Bakery

( YoY -11% )

(53) (2%)

Poultry

( YoY +18% )

64 2%

Fruit Juice

( YoY -4% )

(14) (0%)

Long Life Dairy

( YoY +5% )

17 1%

Other Sales

( YoY -23% )

(15) (0%)

Total

( YoY-4% )

(151) (4%)2% 2%9% 10%

10% 10%

10% 13%

14%13%

16% 16%

39% 36%

Y 2017 Y 2018

Net Sales in SAR Million

3,384 3,232

SAR in Million

Sales Analysis by Country – Q1

By Geography 2017 By Geography 2018


KSA

2,252

66%

UAE

336

10%

Oman

173

5%

Kuwait

163

5%

Qatar

172

5%

Egypt

127

4% Bahrain

71

2%Jordan

62

2%

Export /

Others

28

1%

SAR 3,384

Million

KSA

2,236

69%

UAE

339

11%

Oman

171

5%

Kuwait

161

5%

Egypt

158

5%

Bahrain

79

2%

Jordan

55

2%

Export /

Others

33

1%

SAR 3,232

Million

+3%

+1%

+1% = =

=

=

Sales Analysis by Country – Q1


Gro w th

2 018 vs 2 017

% o f To ta l

Gro w th

KSA

( YoY -1% )

(1 5) (0% )

UAE

( YoY +1% )

4 0%

Oman

( YoY -1% )

(2) (0% )

Kuwait

( YoY -2% )

(3) (0% )

Egypt

( YoY +24% )

31 1 %

Qatar

( YoY -100% )

(1 72) (5% )

Bahrain

( Yoy +12% )

8 0%

Jordan

( YoY -11%

(7) (0% )

Others

( YoY +17% )

5 0%

Total

( YoY -4% )

(1 51 ) (4% )1% 1%2% 2%2% 2%

5%4%

5%

5%5%

5%5%

10%11%

66% 69%

Y 2017 Y 2018

Net Sales in SAR Million

3,384 3,232

SAR in Million

Innovation Pipeline Q1, 2018


Financial Highlights

Operating Performance


% to Sales 34.8% 38.8% 12.4% 14.9% 9.7% 10.6% 4.0 pp 2.4 pp 09 pp

1,177 1,253

Q1, 2017 Q1, 2018

SAR Million

Gross Profit

+75

+6.4%

421

481

Q1, 2017 Q1, 2018

SAR Million

Operating Income

+60

+14.1%

328 344

Q1, 2017 Q1, 2018

SAR Million

Profit Attributable to Shareholders

+16

+4.8%

Statement of Income


Change

Net Sales 3,384 100.0% 3,232 100.0% (4.5%)

Cost of sales (2,206) (65.2%) (1,979) (61.2%) 10.3%

Gross Profit 1,177 34.8% 1,253 38.8% 6.4%

Selling and Distribution Expenses (601) (17.8%) (598) (18.5%) 0.6%

General and Administration Expenses (109) (3.2%) (96) (3.0%) 11.7%

Other Expense, net (41) (1.2%) (44) (1.4%) (9.3%)

Impairment Loss on Trade Receivables (5) (0.2%) (33) (1.0%) (552.6%)

Operating Income 421 12.4% 481 14.9% 14.1%

Exchange Gain / (Loss) 13 0.4% (19) (0.6%) n.a

Finance Costs - net (100) (3.0%) (98) (3.0%) 1.7%

Share of Results of Associates and Joint Ventures 1 0.0% (3) (0.1%) n.a

Profit Before Zakat and Income Tax 334 9.9% 360 11.1% 7.6%

Zakat and Foreign IncomeTax (12) (0.4%) (20) (0.6%) (67.4%)

Profit for the Period 322 9.5% 340 10.5% 5.4%

Profit Attributable to Non Controlling Interest 6 0.2% 4 0.1% (26.2%)

Profit Attributable to Shareholders 328 9.7% 344 10.6% 4.8%

Earnings Per Share (Basic) 0.31 0.33 5 .9%

Profit Attributable to Shareholders % 9.7% 10.6%

2017 2018

1st QuarterSAR million

Segment Reporting


SAR Million Dairy & Juice Bakery Poultry Other ActivitiesAlmarai

Consolidated

Q1 2018

Net Sales 2,346 416 421 49 3,232

Depreciation and Amortisation (316) (61) (81) (42) (501)

Profit Attributable to Shareholders 281 40 25 (2) 344

Percent to Net Sales of Profit Attributable to Shareholders 12.0% 9.6% 6.0% (4.1%) 10.6%

Total Assets 20,690 2,478 5,320 3,274 31,763

Growth versus Q1 2017

-Net Sales (5.9%) (11.2%) 18.0% (23.2%) (4.5%)

-Profit Attributable to Shareholders (18.1%) (40.4%) 187.3% 96.1% 4.8%

Basic EPS* (SAR) 0.31 0.33

Net Income % 10.6% 12.0% 9.6% (4.1%)

Net Sales Growth (4.5%) (5.9%) (11.2%) 18.0% (23.2%)

Net Income Growth 4.8% (18.1%) (40.4%) 187.3% 96.1%

Net Income by Segment


*EPS – Earnings Per Share

344 328 (62)

(27)

55

51

100

150

200

250

300

350

400

Q1, 2017 Dairy & Juice Bakery Poultry Other Q1, 2018

SA

R M

illi

on

6.0%

Investing Cash Flows continue the downward trend in line with

revised 5 year Business Plan

• Manufacturing and Farming spent CAPEX of SAR ~0.2 Billion for various capacity expansion projects.

• Sales Depot, Poultry and Logistics expansion accounted for SAR ~0.1 Billion.

• Replacement and other CAPEX including IDJ accounted for another SAR ~0.2 Billion.

CAPEX spend for the 1st Quarter Year to Date 2018 was SAR 0.5 Billion.


824

1,488 1,572 1,711

2,189

3,575 3,284 3,302

3,115

4,409 4,900

3,312

2,919

30%

39%

31% 29% 32%

45%

33%29%

25%

32% 33%

24% 21%

-30 %

-20 %

-10%

0%

10 %

20 %

30 %

40 %

50 %

-

1,000

2,000

3,000

4,000

5,000

6,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Last 12

Months

SA

R i

n M

illi

on

s

Net Cash Used in Investing Activities Investment as a % of Net Sales

Cash Flow Bridge – Rolling 12 Months


Q1,2018 Free Cash Flow = SAR 60M (SAR350M over 2017)

620

4,555 (547)

(2,919)

(718)

16 1,006

Cash at 31

Mar 2017

Operating Cash Flow

CAPEX / Biological

Assets Dividend Others

Cash at 31

Mar 2018+ SAR 386 Million

Loans Issues /

Payments /

Charges

Key Trends New Slide

Net Debt


6,653 8,237 8,053 8,762 9,344 10,889 10,883 10,910 10,924

98% 101%

75% 75% 74% 81% 81% 73% 71%

2.8x

3.1x 3.0x

2.8x 2.7x 2.7x 2.7x 2.8x 2.8x

0%

50%

100%

150%

200%

250%

300%

350%

0

2,000

4,000

6,000

8,000

10,000

12,000

2011 2012 2013 2014 2015 2016 2016 2017 Last 12

Months

Net Debt Net Debt / Equity Ratio Net Debt / EBITDA

SA

R M

illi

on

SOCPA IFRS

Quarterly Performance – Net Income Trend Analysis


# IFRS revaluation adjustments

Please note that 2016 and subsequent years are based on IFRS however earlier years are based on SOCPA accounting standards

*

235 242 255 274

306 309 328

344 343 349

380 398

433

530

629

674

425 430 450

476

539

595 655

667

284 286

369 373

428

484

489

513

0

100

200

300

400

500

600

700

800

SA

R M

illi

on

2018 versus 2017

Q1 = 4.8%

*#

289

#

658#

664

#

536

Capital gain of SAR 47m in 2012

EBIT and EBITDA margins are starting to improve… Net Sales, EBITDA and EBIT Evolution


7,951

9,883

11,219

12,606

13,79514,699 14,339

13,936 13,784

19.1%

16.9% 16.0% 15.8% 16.4% 17.3% 17.6%18.5%

19.2%

25.6%24.2%

24.4%

23.9% 24.2% 25.3% 26.0%28.1%

29.0%

2011 2012 2013 2014 2015 2016 2016 2017 Last 12 Months

SA

R M

illio

n

Net Sales

EBIT % to Net Sales

EBITDA % to Net Sales

CAGR 2011 – 2018: 9.2% (w/o impact of acquisitions 5.9%)

SOCPA IFRS

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Au

g-0

5

No

v-0

5

Fe

b-0

6

Ma

y-0

6

Au

g-0

6

No

v-0

6

Fe

b-0

7

Ma

y-0

7

Au

g-0

7

No

v-0

7

Fe

b-0

8

Ma

y-0

8

Au

g-0

8

No

v-0

8

Fe

b-0

9

Ma

y-0

9

Au

g-0

9

No

v-0

9

Fe

b-1

0

Ma

y-1

0

Au

g-1

0

No

v-1

0

Ja

n-1

1

Ap

r-11

Ju

l-11

Oc

t-11

Ja

n-1

2

Ap

r-12

Ju

l-12

Oc

t-12

Ja

n-1

3

Ap

r-13

Ju

l-13

Oc

t-13

Ja

n-1

4

Ap

r-14

Ju

l-14

Oc

t-14

Ja

n-1

5

Ap

r-15

Ju

l-15

Oc

t-15

Ja

n-1

6

Ap

r-16

Ju

l-16

Se

p-1

6

De

c-1

6

Ma

r-17

Ju

n-1

7

Se

p-1

7

De

c-1

7

Ma

r-18

Almarai TASI

Key Share Data


35%

24%

16%

25% Savola

HHPrince

Sultan bin

MohammedPIF

17%

10%

15%

20%

25%

30%

De

c-0

7

De

c-0

8

De

c-0

9

De

c-1

0

De

c-1

1

De

c-1

2

De

c-1

3

De

c-1

4

De

c-1

5

De

c-1

6

De

c-1

7

Ma

r-18

Year to date total shareholder's

return since listing

Share Price (SAR) 55.38

Current P/E Ratio (ttm) 28.33

Earnings Per Share (SAR) (ttm) 2.27

Market Cap (SAR Million) 55,380

Shares Outstanding (Million) 1,000

Dividend Yield 1.36%

Key Statistics for Almarai (29 March 2018)

www.almarai.com

Thank you

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Almarai Company...Sales Analysis by Product – Q1 By Product 2017 By Product 2018 Almarai Company 2018 Q1 Earnings Presentation 9 Fresh Dairy 1,305 39% Long-Life Dairy 316 9% Fruit

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