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 • Entry into retail • Formed Kinan in • Obtained 70% of • Established edible oil sector through 2005 and disposed Saudi edible oil refinery in Egypt merger with Azizia 70% stake in 2006 market Panda

History – Key Development Stages • Acquired Pasta business in Egypt, • Issued Sukuk worth SAR 1.5 bln, • Started sugar and oil commercial the largest acquisition made by first tranche of SAR 5 bln program production in Egypt and Algeria, resp. • Acquired oil business in Turkey Savola Foods • Launched Sweeva Sweetener • Acquisition of Giant Stores by Panda • Panda established 1 st DC in Riyadh 2008 2011 2013 2009 2012 • Completed construction of beet • Acquisition of Géant operation in • Made the largest investment of sugar plant in Egypt SAR 2 bln by acquiring additional KSA by Panda (10 hypermarkets and • Launch of Afia olive oil in KSA stake of 6.5% in Almarai 1 supermarket) • Panda signed agreement for 2 nd DC in KAEC

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

Key Facts Net Sales of SAR Around 20,000 27.4 bln in 2012 Employees Market Countries of capitalization of Operations: 8+ SAR 26.5 bln (as of 23 rd July 2013)

Our Businesses Foods Retail (Edible Oils, Sugar, Pasta) (Hypermarkets & Supermarkets) Revenue SAR 16.4 bln Revenue SAR 10.2 bln Investments Plastics (Strategic and Non-core) (Rigid & Flexible) Value of over SAR 14 bln Revenue SAR 1.1 bln

Our Businesses Revenue by Sector Total: SAR 25 bln Total: SAR 27 bln 2011 2012 Foods 36.8% Plastics 36.1% Retail 59.4% 59.9% 3.8% 3.9%

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

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

Oil Value Chain Raw materials Offering Palm oil Refining Packaging B2B/ Export Corn oil Sunflower oil B2C Soya oil Brands and market positions Rawabi, Afia, Ganna, Slite, KSA, GCC & Afia, Al Arabi, Shams, Olite, Egypt #1 #1 Helwa Yemen Nakheel, Dalal Ladan, Aftab, Bahar Turkey Yudum, Sirma Iran #1 #1 Sudan #1 Sabah, Al Tayeb Algeria #2 Afia, Elio Morocco #3 Afia, Hala Kazakhstan #1 Leto, Khazayoushka

Sugar Value Chain Raw materials Offering 100% Raw Cane Refining B2B/ Export Sugar Beet B2C Brands and market positions Beet sugar plant is completed and is KSA, GCC & Al Osra, Ziadah, Safaa, Nehar, Halla, currently going #1 Yemen Sweeva through test phase Al Osra Egypt NA

Pasta Value Chain Raw materials Offering Processing Unbranded 100% Wheat Branded Brands and market positions Egypt Maleka, Italiano #1

Financial Performance CAGR Revenue 21% Net income 16% 626 489 399 16,389 234 15,224 12,026 9,337 2009 2010 2011 2012 Revenue (SAR millions) NI (SAR millions)

Revenue Breakdown SFC Revenue Breakdown by Geography, 2012 (T otal: SAR 16.4 bln) 1.1% 3.7% 1.7% KSA 4.1% Egypt 5.4% Iran 37.9% Turkey Algeria 26.8% Sudan Morocco Kazakhstan 19.3%

Volume Breakdown SFC T otal Sales Volume by Geography, 2012 (T otal: 3.6 mln MT) 3.1% 1.6% 1.3% 0.9% KSA 3.0% Egypt Iran 15.1% Turkey 48.2% Algeria Sudan 26.8% 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 Diversification of 1 product segments • Enter into adjacent and Consumer Cooking / Baking Experience complementary new product categories Cooking / Baking Ready-to- Ingredients Condiments Ready-to-Eat Cook • Targeting new retail and Categories Example    wholesale customers to Edible oil Pasta Mayonnaise    Sugar Rice Sauces drive revenue growth and Currently exposed through investment in enhance profit margins Savola currently Ready-to-cook and condiments are Almarai in GCC plays in immediate adjacencies ingredients Total estimated profit pool of around SAR 1.5 bln in these categories

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

Strategic Growth Drivers Organic growth 3 T otal base for countries where • Large population base with Savola operates high disposable incomes to drive consumption of basic  Population: 394 mln  Population Growth (2012): 1.5% commodities  Edible Oil Consumption: 8.6 mln MT  Sugar Consumption: 12.8 mln MT • Exports to neighboring countries Organic growth to be fueled by capacity expansion

Strategic Growth Drivers 3 2 1 Egypt Turkey KSA  Population: 84.0 mln  Population: 74.5 mln  Population: 28.7 mln  Population Growth (2012): 1.8%  Population Growth (2012): 1.2%  Population Growth (2012): 2.1%  GDP Growth: 6.0%  GDP Growth: 1.5%  GDP Growth: 2.3%  Edible Oil Consumption: 1.9 mln MT  Edible Oil Consumption: 604,200 MT  Edible Oil Consumption: 2.2 mln MT  Sugar Consumption: 2.8 mln MT  Sugar Consumption: 2.3 mln MT  Sugar Consumption: 1.2 mln MT 8 4 8 Kazakhstan Iran 3  Population: 16.4 mln  Population: 75.6 mln 4 6  Population Growth (2012): 1.2%  Population Growth (2012): 1.1% 5 2 1  GDP Growth: 2.0%  GDP Growth: 5.9%  Edible Oil Consumption: 346,300 MT  Edible Oil Consumption: 1.8 mln MT 7  Sugar Consumption: 480,000 MT  Sugar Consumption: 2.5 mln MT 6 7 5 Morocco Algeria Sudan  Population: 45.7 mln  Population: 32.6 mln  Population: 36.5 mln  Population Growth (2012): 2.5%  Population Growth (2012): 0.9%  Population Growth (2012): 1.4%  GDP Growth: -7.3%  GDP Growth: 3.7%  GDP Growth: 3.1%  Edible Oil Consumption: 421,500 MT  Edible Oil Consumption: 621,900 MT  Edible Oil Consumption: 675,000 MT  Sugar Consumption: 1.3 mln MT  Sugar Consumption: 750,000 MT  Sugar Consumption: 1.5 mln MT

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

Strategic Growth Drivers 5 Strategic M&A Food Categories in GCC Total packaged Overlapping with Savola Other food market / Almarai businesses Categories 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

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