Investor presentation FY 2016 1 SACC Investor presentation FY 2015
Investor presentation
FY 2016
1SACC Investor presentation FY 2015
2SACC Investor presentation FY 2015
Introduction 3
Business overview 10
Financials 26
Table of Content
3
Introduction
SACC Investor presentation FY 2015
4
INTRODUCTION
SACC Investor presentation FY 2015
• SACC was one of the SBU's of SAUDIA.
SACC was 100% owned by SAUDIA until
the latter divested its shares during the
2008 privatization.
• 49% of SACC shares at that time were
controlled by the consortium of Al-Hokair
Group, Al-Fowzan Group and a French
company Newrest.
• In May 2012, the Capital Market Authority
approved SACC's application for IPO
where 24.6 million shares representing
30% of SACC shares were offered for sale
with an offering size of 1.33 billion Saudi
Riyals. As of 31.12.2015 SACC foreign
ownership was 19%, representing 24
countries.
5
SHAREHOLDERS as of 31/12/2015*)
Strategic Catering Co: Al-Hokair Group, Injaz Holdings, and Newrest Group
*) As of 03/02/2016 percentage of major shareholders SACC, SCCL remains the same. Source: Tadawul
SACC Investor presentation FY 2015
6
BRIEF HISTORY
• SACC was established in 1981
• Started with :
1. Jeddah Catering Unit at King Abdul
Aziz International Airport in 1981
2. Riyadh Catering Unit at King Khalid
International Airport in 1983
3. Cairo Catering Unit at Cairo
International Airport in 1984
4. Dammam Catering Unit at King
Fahad International Airport in 1999
5. Medina Catering Unit at Prince
Mohammed bin Abdul Aziz
International Airport in 2001
SACC Investor presentation FY 2015
BOARD OF DIRECTORS 31.12.2015
7SACC Investor presentation FY 2015
Saleh Bin Nasser
Al Jasser
Chairman (Non-executive)
Sami A. Al Hokair
Non-executive
Board Member
Shawgi M. Mushtag
Non-executive
Board Member
Jonathan Stent-Torriani
Non-executive Board MemberRaid Bin Ibrahim
Sulaiman Al-Mudaihem
Non-executive Board Member
Fahd A. Al Rasheed
Non-executive & Independent
Board Member
Abdullah Jameel Taibah
Non-executive & Independent
Board Member
Ayman T. Al-Tayyar
Non-executive
Board Member
Abdulmohsen Al-Yahya
Non-executive
Board Member
8
CORPORATE ORG. CHART
SACC Investor presentation FY 2015
SACC STAFF COUNT
9
2011 2012 2013 2014 2015
Saudi males 849 896 788 758 945
Saudi females 135 165 165 98 105
Total Saudis 984 1,061 953 856 1,050
Expatriates 2098 2416 2549 3025 2807
Total permanent staff 3,082 3,477 3,502 3,881 3,857
• Saudization rate at the end of 2015 was 20.9%, which places SACC in
medium green level in relevant category
• In addition to permanent staff SACC employed 1,295 temporary staff at
the end of 2015
• The total number of permanent and temporary staff at the end of the year
was 5,152
SACC Investor presentation FY 2015
10SACC Investor presentation FY 2015
Business Overview
11
PRODUCTS & SERVICES
SACC Investor presentation FY 2015
SAUDIA FLEET DEVELOPMENT
12SACC Investor presentation FY 2015
Aircraft Type Family 320
Family 330
33R Family 744
Family 787
Family 777- 200
Family 777- 300
E70 Total
Dec 31, 2015 50 12 - 3 - 22 19 13 119
Phase IN1 2 - 9 - 4 - 9 - 24
Phase OUT - - - 3 - 3 - 13 19
Dec 31, 2016 52 12 9 - 4 19 28 - 124
- Total arrivals of the aircraft in 2016 is expected to be 28, however remaining 4 aircrafts will be operative in 2017.
The state-owned carrier would raise the number of its planes to 200 from 119
now and add new international and domestic routes.
He stressed that Airline’s plan is to purchase more than 100 aircraft during
the next five years. Furthermore, he has announced that 19 planes will be
taken out of service during the upcoming period, of which 15 are the Embraer
type and four ‘747’ jumbo jets.
“
”Saleh Al-Jasser, 2015
FLIGHT CATERING UNITS
13
Location Established
Current
production
pa.
Max
production
capacity pa.
Utilization
rate
JED 1981 14 16 88%
RUH 1983 13 15 87%
DMM 1999 3 6 50%
MED 2001 2 3 62%
CAI 1984 1 3 43%
Total 33 43 77%
CPU 2012 19 27 69%
SACC Investor presentation FY 2015
STATISTICS
14
Particulars 2015
Total number of inflight meals catered 33 million
Total number of flights catered 219,487 flights
Total number of Hi-Loaders 130 units
Total number of Airline clients SAUDIA + 55 other airlines
Total number of Business Lounges 18 (11 Intl & 7 Dom)
Total number of Lounges guests 2 million
Total number of Non-Airline clients 46 (33 Food & 13 Laundry)
SACC Investor presentation FY 2015
15
FLIGHTS AND MEALS
1000 units 2011 2012 2013 2014 2015
Number of flights
Saudia 114 119 120 127 130
Others 25 28 32 51 60
Private 16 20 23 25 30
Total 154 168 175 204 219
Number of meals
Saudia 22,053 23,879 24,917 27,455 27,953
Others 3,446 3,301 3,537 4,299 4,271
Private 612 816 1,002 978 866
Total 26,112 27,997 29,456 32,732 33,091
SACC Investor presentation FY 2015
16
LOUNGE GUESTS
SACC Investor presentation FY 2015
79
98
106
208
444
610
716
797
0
0
0
2
620
672
764
947
1,143
1,380
1,585
1,954
0 500 1000 1500 2000 2500
2012
2013
2014
2015
TOTAL RUH MED JED DMM
17
2015 KINGDOM’S AIRPORT RECORDED 81.9m
PASSENGERS
JED RUH DMM MEDOther
airportsTotal
Arrivals 212,799 172,754 84,803 48,296 127,973 646,693Passengers in millions 30.1 22.5 9.4 6.3 13,6 81.9
SACC Investor presentation FY 2015
• Four main airports:
• 80% of flights
• 83% of passengers
18
DEPENDANCY FROM SAUDIA DECREASES
SACC Investor presentation FY 2015
2011 2012 2013 2014 2015
SV share of net sales
77% 73% 72% 69% 65%
• Besides in-flight catering services, SACC provides Saudia airline
equipment, lounge services and manages SkySales on-board sales
• SACC’s dependency from SV has decreased significantly due to
successful strategy implementation
• Trend is expected to continue also during 2016
19
CENTRAL PRODUCTION UNIT (CPU)
Freezing tunnel using liquid nitrogen
Smoke chambers for various smoked products Pre-cut vegetables and chilling machine
SACC Investor presentation FY 2015
20
BUSINESS LOUNGES
RUH International Lounge RUH Domestic Lounge
DMM International Lounge DMM Domestic Lounge
SACC Investor presentation FY 2015
21
BUSINESS & TRANSIT LOUNGES
RUH Lounge Cafe
MED International Lounge
SACC Investor presentation FY 2015
JED Transit Lounge
22
AIRPORT EXECUTIVE OFFICE
JED Executive Office
RUH Executive Office
DMM Executive Office
SACC Investor presentation FY 2015
23
LOUNGE CAFÉ
RUH TR-3 Lounge Café
JED South Terminal (INT) Lounge Café
JED South Terminal (DOM) Lounge Café
SACC Investor presentation FY 2015
24
RETAIL
RUH TR-3 SkySales Shop
JED South Terminal DOM DEP SkySales Shop JED South Terminal DOM ARR SkySales Shop
JED North Terminal DEP SkySales Shop
SACC Investor presentation FY 2015
25
HAJJ & UMRAH CATERING SERVICES
SACC Investor presentation FY 2015
• Provide catering services to businesses
(B2B) for Hajj and Umrah pilgrims.
• Provide safe, quality, value for money food
based on client needs for consumption of
pilgrims during their stay in the Kingdom.
• Taking part in the Kingdom’s effort in
supporting the visitors of the Two Holy
Mosques during the Pilgrimage Seasons.
26
NON-AIRLINES BUSINESS
SACC Investor presentation FY 2015
• Business & Industry (B&I)
STC, banks, Tasnee, CITC, etc.
• Institutions
British Intl School, American Intl School,
Jeddah Intl School, etc.
• Laundry Services
Various hospitals & hotels
• Rail Catering
Saudi Railways Organization
• Remote Sites Catering
Ma’aden, Nabors, Arabia Drilling Co, etc.
• Accommodation
27SACC Investor presentation FY 2015
Financials
28
6,756.99
6,911.76
54.00
123.05
50.00
100.00
150.00
200.00
IPO
9th
Ju
l-1
2Ju
l-1
2D
ec-
12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3M
ay-1
3Ju
n-1
3Ju
l-1
3A
ug-
13
Sep
-13
Oct
-13
No
v-1
3D
ec-
13
Jan
-14
Feb
-14
Mar
-14
Ap
r-1
4M
ay-1
4Ju
n-1
4Ju
l-1
4A
ug-
14
Sep
-14
Oct
-14
No
v-1
4D
ec-
14
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5M
ay-1
5Ju
n-1
5Ju
l-1
5A
ug-
15
Sep
-15
Oct
-15
No
v-1
5D
ec-
15
5,000
10,000
15,000
20,000
Tadawul Index SACC closing share price
SHARE PRICE DEVELOPMENT
SACC Investor presentation FY 2015
29
2015 KEY FINANCIALS
2015
487
560
2011 421
699
2014 654
2012
2013+6,9%
28.9
2015
30.6
2013
28.7
30.9
2011
30.5
2014
2012
5,944,50
2014
2015 8,52
5,506,94
2012
6,75
2013
7,79
Earnings per share before Z&IT Dividends per share
+7,5%
1.318
2012 1.062
981
2015
2013
2014 1.226
1.159
2011
+5,8%1.687
1.465
1.870
2011
2014
2013
2015 2.261
2.136
2012
Note! 2015 final dividend is not yet decided
Net sales increased by 5.8% from 2.136 MSR to 2.261 MSR
Net profit increased by 6.8% from 653 MSR to 699 MSR
Earnings per share before zakat and income tax are 8.52
SAR (7.97 SAR)
Cash and cash equivalents have reduced from 477 MSR to
304 MSR. SACC is currently investing into fixed assets (20
H/L, Dammam staff accommodation, KAEC Laundry project,
Madinah new catering unit) and maintaining high dividend
payout ratio
Company remained debt free after financing all its operating
expenses, CAPEX and dividend from cash flow
Shareholders equity
Net profit %
Net profit
SACC Investor presentation FY 2015
Revenues
REVENUES
• Key businesses experienced solid growth rates
Source: Financial Statements
1.500
1.400
2.300
2.100
2.200
1.300
1.800
2.000
1.900
1.700
1.200
0
4%
2015
2.136
2015 vs. 20142014
75%
10%
+6%
8%
1.867
77%
2.261
+2%
2013
10%
+14%
+48%
2.261
6%
2% -17%
+17%
11%
72%
3% 9%
5%
3%
10%
10%4%
2012
1.687
5%
77%
3%
80%
7%
1.465
3%
4%
4%
2011
SAR (millions)
30
Other Revenues Non-Airline SkysalesLounges Inflight Catering
SACC Investor presentation FY 2015
NET INCOME
• Net income before tax and zakat increased by SAR 45m or +6.8%
Source: Financial Statements
SAR (millions)
• Percentage of net income before tax and zakat to total revenues
699654
569
487
421
0
100
200
300
400
500
600
700
2015
+6,8%
20132011 20142012
28.7%*) 28.9% 30.5% 30.9%30.6%
31SACC Investor presentation FY 2015
CASH FLOW
SAR (millions)
32
47
10
25
91
56
Provisions and
accruals, net
304
Dividends paid
CAPEX Cash balance
31.12.2015
-292
Operating cashflow, +649 MSR
-565
Zakat and income tax
Long term investments
Cash balance
31.12.2014
Net income Depr.
477
EOSA paid
699
1,126
Change in WoC
-130
• Operating cash flow was 649 MSAR
• WOC development towards the year end was good. In December we received 300
MSAR from Saudia instead of usual 100 MSAR
• CAPEX was lower than budgeted
• Dividends paid represented the largest single outflow
SACC Investor presentation FY 2015
33SACC Investor presentation FY 2015