Agenda 3 1 2 4 Intangibles Financials Overview Our - PowerPoint PPT Presentation

Agenda… 3 1 2 4 Intangibles Financials Overview Our Businesses: Current Position & Future Direction

History – Key Development Stages • Entered oil business in • Started Jeddah • Established with • Entered sugar Iran (Acquisition), Plastics factory a paid up capital refining Morocco (Greenfield), • Acquired 40% stake in of SR 40m business in KSA Sudan (Greenfield), Almarai Kazakhstan (Acquisition) 1978 1992 2004 1990 2005/06 1991 1997 1998 • Formed Kinan in • Obtained 70% of • Established edible oil • Entry into retail sector 2005 and disposed Saudi edible oil refinery in Egypt through merger with 70% stake in 2006 market Azizia Panda

History – Key Development Stages • Issued Sukuk worth SAR 1.5 bln • Acquired Pasta business in Egypt, • Started sugar and oil commercial • Purchased Al- Muhaidib’s stakes in the largest acquisition made by production in Egypt and Algeria, resp. SFC (10%) and Panda (18.6%) by • Acquired oil business in Turkey Savola Foods issuing 6.79% new shares in Savola • Launched Sweeva Sweetener • Acquisition of Giant Stores by Panda • Panda launched convenience store • Panda established 1 st DC in Riyadh format 2008 2010/11 2013 2014 2009 2012 • Started beet sugar operations in • Acquisition of Géant operation in • Made the largest investment of SAR Egypt KSA by Panda (10 hypermarkets and 2 bln by acquiring additional stake • Capacity expansion of Afia plant 1 supermarket) of 6.5% in Almarai in KSA completed • Launch of Afia olive oil in KSA • Signed SPA to sell 100% of • Panda signed agreement for 2 nd DC Savola’s packaging business in KAEC

History – Key Development Stages Today Savola Group is one of the top Food and Retail player in the MENA region with leading brands

Key Facts Net Sales of Around 29,200 SAR 26.6 bln Employees in 2014 at end of 2014 Market Countries of capitalization of Operations: 8+ SAR 44 bln as of 3 rd February 2015

Our Businesses Foods Retail (Edible Oils, Sugar, Pasta) (Hypermarkets & Supermarkets) Revenue SAR 14.6 bln Revenue SAR 12.2 bln Investments (Strategic and Non-core) Value of over SAR 21 bln

Our Businesses Revenue by Sector Total: SAR 25.3 bln Total: SAR 26.6 bln 2014 2013 45.9% 43.2% Foods 57.6% 54.9% Retail Note: Packaging sector was deconsolidated in 2014 as SPA was signed to sell Savola’s packaging business. Revenue from packaging sector was SAR 1.12 billion in 2013

Our Key Strengths Broad and diversified geographic footprint and product offering Market leader in high Extensive consumer and growth and fragmented market understanding markets Resilient business model Excellent brand awareness based on stable revenue in all markets that Savola is generation by serving Strong and experienced operating in consumers’ basic needs management with outstanding historical financial track record

Our Goals Continue to grow by investing in and Increase profitability focusing on core sectors Maximize total shareholders’ return Give more autonomy to subsidiaries to Reallocate cash prepare them for invested from non-core potential spin-offs investments to core sectors Increase dividends

2 Our Businesses Current Position & Future Direction

Savola Foods Co.

SFC Market Leadership Offering KSA Egypt Iran Turkey Algeria Sudan Morocco Oil Ghee Sugar Pasta SFC is a market leader in all the countries we operate in

SFC Brands 1.5 Revenue SAR Bn. 1 0.5 0 Rawaby Ganna Maleka Bahar Osra Yudum Afia Ladan/Gold We have created strong unique brands across the region

Oil Value Chain Raw materials Offering Palm oil Refining Packaging B2B/ Export Corn oil Sunflower oil B2C Soya oil

Sugar Value Chain Raw materials Offering 91% Raw Cane Refining B2B/ Export Sugar 9% Beet B2C

Pasta Value Chain Raw materials Offering Processing Unbranded 100% Wheat Branded

Financial Performance CAGR Revenue 5% Net income 27% 631 626 610 489 234 16,389 15,224 14,552 14,592 12,026 2010 2011 2012 2013 2014 Revenue (SAR millions) NI (SAR millions)

Revenue Breakdown SFC Revenue Breakdown by Category 2013 & 2014 Total Revenue SAR 14.5 bln Total Revenue SAR 14.6 bln 2013 2014 3.4% 3.2% Oil 30.2% 32.6% Sugar Pasta 64.0% 66.6%

Revenue Breakdown SFC Revenue Breakdown by Geography, 2013 & 2014 Total Revenue SAR 14.5 bln Total Revenue SAR 14.6 bln 2013 2014 4.2% 2.0% 0.2% 1.9% 2.2% 0.9% KSA 3.7% 4.3% Egypt 7.7% Iran 6.8% 35.0% 35.1% Turkey Algeria 23.7% Sudan 26.8% Morocco Kazakhstan 21.1% 24.2%

Volume Breakdown by Geography SFC total sales volume grew by around 10% during 2014 Total Volume: 3.6 mln MT Total Volume: 3.97 mln MT 2013 2014 2.5% 1.6% 1.5% 1.6% 0.6% 3.1% 0.9% 0.1% KSA 3.8% Egypt 4.3% Iran 13.5% 16.1% Turkey 42.8% 43.2% Algeria Sudan 33.8% 30.6% Morocco Kazakhstan

Strategic Growth Drivers Diversification of Leveraging the value 1 2 product segments of existing brands A regional leader in basic foods across all channels Organic growth 3 Selective upstream 4 integration Strategic M&A 5 Mission is to enrich consumer cooking experience by developing ingredient solutions

Strategic Growth Drivers 1) Diversification of product segments • Enter into adjacent and complementary new product categories • Targeting new retail and wholesale customers to drive revenue growth and enhance profit margins Consumer Cooking / Baking Experience Cooking / Baking Ingredients Ready-to-Cook Condiments Ready-to-Eat Categories Example    Edible oil Pasta Mayonnaise    Sugar Rice Sauces Currently exposed through investment in Almarai Savola currently Ready-to-cook and condiments are plays in ingredients immediate adjacencies Total estimated profit pool of around SAR 1.5 billion in the adjacent categories

Strategic Growth Drivers 2) Leveraging the value of existing brands • Enhance economies of scale in marketing and advertising • Facilitate establishing a foothold in new markets KSA Turkey Iran Others Egypt Afia and Ladan have been used as umbrella brands

Strategic Growth Drivers 3) Organic growth • Large population base with high disposable incomes to drive consumption of basic commodities • Exports to neighboring countries T otal base for countries where Savola Foods operates  Population: 380 million  Population Growth (2013): 1.5%  Edible Oil Consumption: 8.2 million MT  Sugar Consumption: 12.4 million MT Organic growth to be fueled by capacity expansion

Strategic Growth Drivers Example: Iraq Oils & Fats Volume Export potential to neighbouring countries (in ‘000 T ons) +3% CAGR  For example Iraq 546 530 515  Fragmented market with no sophisticated player Ghee +3% 25% 25% 25%  Proximity to Jeddah plant Oil +3% 75% 75% 75%  Brand awareness of Afia  Branding capabilities and know how 2012 2013 2014 Illustrative purposes only Large and fragmented markets with no sophisticated player

Strategic Growth Drivers 4) Selective upstream integration Markets Description (% seeds locally produced)  Malaysia (387%)  Local farming larger than local consumption Net United States (87%)   Government incentives aligned to favor Exporter  Indonesia (400%) Markets exports  Argentina, Brazil  Croatia (56%)  Local farming substantial but countries still  India (47%) relies on imports to meet demand Origination  Turkey (40 - 50%) Markets  Government incentives aligned to protect Sudan (60%)  local farmers Limited Upstream  Little to no local farming industry exists integration  Egypt (15%) in Sudan and  Government encourages imports to secure Arabia (0%)  Destination Egypt appropriate level of supply and to protect Iran (15%)  Markets consumer prices  Morocco / Algeria (below 5%)  Competition is from local players Selected upstream integration in Sudan and Egypt

Strategic Growth Drivers 5) Strategic M&A Food Categories in GCC Overlapping with Total packaged food Other Savola / Almarai market Categories businesses SAR 46 bln Total B2C SAR 80 bln market size SAR 34 bln Number of 52 28 24 Categories Profit Pool SAR 22 bln SAR 12 bln SAR 10 bln (Gross Profit) For illustrative purposes only Large profit pool where Savola is not currently present

Panda Retail Co. (Formerly Azizia Panda United Co.)

Retail Value Chain Super • Selling area per store: 1,800-2,500 m 2 Super Vendors / 50% Sales intensity: SAR 413 /m 2 /week • • New Capex per store: SAR 8-12 mln Whole Sale Hyper • Selling area per store: 3,000-12,000 m 2 Hyper Sales intensity: SAR 357 /m 2 /week • Distribution Center • New Capex per store: SAR 25-30 mln 50% Pandati • Selling area per store: 200-400 m 2 • Sales intensity: SAR 159 /m 2 /week New Capex per store: SAR 600-800 k • Consumers Panda KSA like to like sales increased by 3.0% in 2014

Key Facts Customer Count Number of Stores and Selling Area CAGR CAGR 13% Selling Area 20% 640,000 m 2 101 Mn 155 23 176,000 m 2 44 Mn 131 110 54 2014 60 52 9 2007 2013 2014 Hypermarkets Supermarkets Pandati 2007 Present in 35 cities across KSA with exceptional distribution network