Agthia Group PJSC Corporate Presentation September 2019 1
COMP ANY OVERVIEW 2
AGTHIA GROUP PJSC Abu Dhabi based food & beverage For the year ended 31 Dec 2018, USD Millions public joint stock company except EPS and P/E Ratio manufacturing in 6 1 countries Net Revenues 548 11 factories and 18 warehouses Gross Profit 187 4 thousand employees 56 Net Profit exporting to more than 30 countries 1 UAE, KSA, Kuwait, Oman, Turkey, Egypt 87 EBITDA EPS 0.096 Business categories P/E Ratio 3 Consumer Segment: Water, Juice, Dairy, 9.9 TP/FV 2 , Bakery, Trading Items 807 Total Assets Agri (culture) Segment: Flour, Animal Feed 531 Total Equity UAE #1 in Water, Animal Feed, Flour, TP 3 ADX:AGTHIA 29 Aug 2019 Closing price AED 3.50 2 Tomato Paste & Frozen Vegetables 3
OUR SHAREHOLDERS A semi-government company with 51% owned by Senaat 5% About Free Float | @ 31 Dec 2018 Free • Float, 264 million shares held by 70k investors 44% • 5% owned by Emirates International Investment Company (EIIC) 48 million shares held by foreign 1 investors • 51% • Institutional investment 42 percent (111 About SENAAT | Major shareholder million shares) • Senaat, Arabic word for “Industries” • One of UAE’s largest industrial investment holding companies owned 1 Non-GCC and non-UAE origin investors by the Government of Abu Dhabi • Manages more than AED 27.2 billion of industrial assets • Operates in four key sectors: metals, oil and gas services, construction and building materials, food & beverages manufacturing 4
OUR SUCCESSFUL HISTORY A 40-year establishment built on a proud heritage • Acquisition of Al Bayan Government-owned and managed company Water Company in the • Acquisition of Al UAE Ain Vegetable • Flour Mills and Animal Feed Production 1978 • Launch of Al Distribution • Production and and JV with Ain Zero Company agreement with Al Appointment distribution distribution Anderson • Established by the late HH Sheikh Bromate and Foah agreement with agreement Hay in the of new Flour Vit D Zayed bin Sultan Al Nahyan • Capri-Sun with Yoplait Launch of Al Ain ZERO management UAE 2006 2008 2010 2015 2017 2019 • Animal Feed production started 1981 • Al Ain Mineral Water Company 1990 established • Formation of Emirates Foodstuff 2004 2007 2009 2012 2016 2018 and Mineral Water Company • • JV in Kuwait Launch of Al Ain Acquisition Egypt Acquisition (Agthia) as part of Abu Dhabi Vitamin D & Bambini to produce Al of Ice greenfield of Pelit Government’s privatization Ain Water Crystal in operation water • R&D Agreement with initiative Nutreco the UAE starts company • Acquisition of (Alpin) in Delta Water • United Khaleeji Water • IPO – Listed on ADX with 49% of 2005 Turkey Factory factory commenced production in Kuwait Company in the company offered to public the KSA 5
OUR MISSION, VISION AND CORE VALUES Our Vision Our Mission To provide the nutritious, valued and responsibly produced food, beverages and To inspire healthier and happier lives through the wholehearted choices we offer. brands that nourish full and active lives, everyday. Our Values 6
OUR BUSINESS STRUCTURE Business Category Brands Production Locations Water & Beverages UAE, KSA, Kuwait, Oman, Bottled Water, 5-Gallon Water, Turkey, Iraq (licensing Juice Drinks, Fresh Juice agreement) Food Fruit Yogurt, Kids Yogurt, Flour, Processed Food, Ambient & UAE, Egypt Frozen Bakery, Dates, Trading Items Animal Feed UAE Agrivita, Agrivita Marabe 7
COMMITTED T O INNOV A TION 8
WATER &BEVERAGES 1) HPP juices for the first time in the region HPP Technology investment first time in the GCC Juice passed through High Pressure Remains fresh up to 21 days Retains nutrients for longer time 2) In 2016, the first ever Al Ain Zero, Zero Sodium bottle drinking water in the GCC to promote a healthy lifestyle We created the Zero Sodium Bottled Water Segment through massive investments in Outdoor, In-Store and TV Advertising In only 3 years: Al Ain Zero Annual Sales Al Ain Zero value market (AED m) share % 70 5% 0 0% 2015 Current 2015 Current 9
WATER &BEVERAGES (CONT’D) 3) In 2018, Al Ain Plus with Vitamin D, the world’s first Vitamin D enriched water Unique functional water that was created in 10% of Taste the RDA No No identical response to a major Vitamin D supplementation need of flavours colours to Al Ain Vitamin D Water in our region 4) In Q4 2018, Al Ain Bambini Water for Babies Specifically designed to be gentle on babies stomachs Is free of sodium, fluoride, bromate and nitrate Is convenient to use with baby formula 5) In Q1 2019, the first locally produced lactose-free Fruit yogurt in the region Delicious fruit yogurt that is created for Lactose- intolerant individuals who want to consume yogurt 10
WATER &BEVERAGES (CONT’D) 6) Al Ain Zero Bromate, first Zero-Bromate water Unique filtration technology Designed for people with kidney problems Suitable for pregnant women Sold in pharmacies and hospitals 7) Al Ain Water in Box First of its kind in the GCC Carry with you for camping Easy pour tap 100% recyclable 8) Alpin Alkaline Naturally Alkaline Water from Differentiated from competition who add to springs water to make it Alkaline pH8.5 mineral water Rich in alkalizing compounds 11
AGRI & FOOD INNOVATIONS 2017 2018 2019 FLOUR Vitamin D F1 Pashtun Bhatti Flour F1 Khobooz F1 Bakery F1 Loaf Patent Flour Flour Trading Items Logo & and packaging Saudi & Frozen Vegetables Packing Re-vamp Okra Extra Peas and Carrot change – Pure natural to AL AIN logo FOOD Turkish Coffee Evaporated Tissue Packaging Green Tea Fresh Chicken Eggs Milk Re-vamp Processed Chicken Range Home Care Range FEED Dairy Early Male Sheep Broiler HPH Al Wasmi range – Broiler, Ruminant Al Nawamis Camel Racing and Al Life Stage Fattening Sheep Program Layer, Dairy, Sheep, MG Feed Nukhba Beauty Feeds Program • Nutritional quality upgrade as per genetic Layer Mash Cocci Broiler Layer Premix modifications & adaptations to customer & Economy Slow Pelleted range 12 specific requirements – all species Mineral Blocks Growth Feed
FINANCIAL PERFORMANCE 13
NET REVENUES Transforming the business into a consumer-driven one in ten years Group Revenues, AED Share in Group Revenues, % 0.58B 1.33B 2.05B 2.00B Consumer | Water, Beverages and Food excl. Flour 17% 36% 53% 54% • > 50% of Group revenues 83% • Higher growth potential, profitability 64% Agri | Flour and Animal Feed 47% 46% • < 50% of Group revenues • Limited growth potential, profitability 2007 2012 2017 2018 14
GROSS PROFIT MARGIN 1,400 bps margin improvement in ten years Gross Profit Margin, % Subsidy rationalization Commodity cost 2 nd High Speed hikes. High vulnerability with Bottling line 34.7 34.5 33.1 higher Agri share 32.0 AGTHIA in business Better revenue 27.1 28.0 mix, Low-margin Agri 26.2 25.0 1 st High Speed Cost 25.2 business 83% of optimization Bottling line group revenues 21.0 20.7 18.5 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 15
NET PROFIT 6 percent CAGR over the last five years 300 20.0% 17.6% 17.1% 18.0% 15.6% 15.9% 250 15.4% 16.0% 14.1% • EBITDA Margin 13.1% Like-for-like basis, 14.0% 12.6% 12.4% 200 net profit posted 11.7% 12.0% 10.1% 11.5% growth in 10.5% 10.5% Net Profit Margin 9.3% 2018, driven by: 150 10.0% 254 8.0% 231 (i) Cost optimization, 210 206 100 193 (ii) Higher volume and 6.0% 159 Net Profit (AED) better revenue mix 123 4.0% 50 2.0% 0 0.0% 2012 2013 2014 2015 2016 2017 2018 Net Revenue (AED) 1.33B 1.51B 1.66B 1.87B 2.01B 2.05B 2.00B Subsidy (AED) 328M 448M 387M 366M 267M 146M 149M 16
KEY PERFORMANCE RATIOS Return on Total Assets 7 % Return on Net Capital 12 % Employed Return on Equity 11 % Net Debt to Equity (Ratio) -3 % Avg. Working Capital (Ratio to NR) 33 % 17
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