Almarai Company

First Quarter 2019

Business Performance

Main Events

Almarai Company 2019 Q1 Earnings Presentation 3

Market Update• Core Markets continue to stabilize in Q1

• Egypt continues to preform strongly mainly in the dairy segment

• UHT discounting has subsided in general

• VAT implemented in Bahrain

Company Highlights • Notably strong performance in the Poultry Segment driven by HORECA channel expansion (over 45% of Poultry Sales

volume)

• Bakery continues its recovery in Q1

• Fresh milk market share stabilizing between 65% and 70%

• USD 500 M international sukuk issued during the quarter which was oversubscribed 11 times, marking a successful beginning

of Almarai USD 2.0 B international sukuk program

• Sukuk Series II amounting to SAR 1.0 B was successfully repaid on March 9th

• Almarai continues to focus on controlling input costs, reducing operating cost, reducing capex and maximizing FreeCashFlow

• Acquisition of Premier Foods expands Almarai’s footprint within the HORECA sector

• Innovation pipeline continues to grow. The main product launches for the quarter are: Blueberry Greek Yogurt, Mango

Yogurts, and Super Juices

Market Share

• Almarai market share is stable in most

categories in KSA on MAT basis.

• Most of the categories, Almarai stands at #1

position in the KSA market.

Almarai Company 2019 Q1 Earnings Presentation 4*AC Neilson’s February 2019

MAT Category

growth (Value)%

Almarai MAT Val.

Share Change

Almarai Rank

(Value)

PLAIN REGULAR LABAN +0.4% -1.9 1

PLAIN FRESH MILK -1.4% -1.0 1

UHT MILK +2.3% +0.7 2

FRESH GISHTA -7.0% +1.8 1

FRUIT JUICE BOTTLES -7.7% +2.0 1

CHEESE JARS +0.9% -2.8 2

SLICED BREAD -1.9% -3.6 1

CROISSANTS +1.9% +0.7 1

WHOLE CHICKEN (FRESH) +0.8% -3.9 1

68% 68% 69% 69%

70%

69% 66% 66% 65% 65% 66%66% 66%

50%

55%

60%

65%

70%

75%

0

90

180

270

360

450

Fresh Dairy KSA - 12 month Market Share

Almarai Company 2019 Q1 Earnings Presentation 5

Innovation Pipeline Q1 2019 and Full Year 2018

Segment Q1 2019 2018

Dairy & Juice

Bakery

Poultry

Infant

Nutrition

Financial Performance

Profit & Loss Statement

Almarai Company 2019 Q1 Earnings Presentation 7

Change

Revenue 3,232 1 0 0 .0 % 3,354 1 0 0 .0 % 3.8%

Cost of sales (1,978) (61.2%) (2,144) (63.9%) (8.4%)

Gross Profit 1,254 38 .8 % 1,210 36 .1 % (3.6%)

Selling and Distribution Expenses (595) (18.4%) (610) (18.2%) (2.4%)

General and Administration Expenses (96) (3.0%) (95) (2.8%) 1.4%

Other Expense, net (44) (1.4%) (22) (0.7%) 49.5%

Impairment (Reversal) / Loss on Financial Assets (33) (1.0%) (2) (0.1%) 94.4%

Operating Income 485 1 5.0 % 481 1 4 .3% (0.9%)

Exchange Gain / (Loss) (19) (0.6%) 9 0.3% n.a.

Finance Costs - net (102) (3.2%) (130) (3.9%) (27.4%)

Share of Results of Associates and Joint Ventures (3) (0.1%) 0 0.0% n.a.

Profit Before Zakat and Income Tax 360 1 1 .1 % 360 1 0 .7% (0.1%)

Zakat and Foreign IncomeTax (20) (0.6%) (23) (0.7%) (14.9%)

Profit for the Period 340 1 0 .5% 337 1 0 .0 % (1 .0%)

Profit Attributable to Non Controlling Interest 4 0.1% (1) (0.0%) n.a.

Profit Attributable to Shareholders 345 1 0 .7% 336 1 0 .0 % (2.6%)

Earnings Per Share (Basic) 0.34 0.33 (2.6%)

Profit Attributable to Shareholders % 10.7% 10.0%

SAR Million2018 2019

1st Quarter

Financial Performance

Revenue

Gross Profit

EBITDA

Net Income

(SAR in Millions)

13,936 13,723

3,232 3,354

0

3,000

6,000

9,000

12,000

15,000

FY 2017 FY 2018 YTD Q1, 2018 YTD Q1, 2019

3.8%

-1.5%

5,584 5,445

1,254 1,210

40% 40%

39% 36%0

1,000

2,000

3,000

4,000

5,000

6,000

FY 2017 FY 2018 YTD Q1, 2018 YTD Q1, 2019

-3.6%

-2.5%

3,919 3,869

836 852

28% 28%

26% 25%0

1,000

2,000

3,000

4,000

5,000

FY 2017 FY 2018 YTD Q1, 2018 YTD Q1, 2019

2.0%

-1.3%

2,182 2,009

345 336

16%15%

11% 10%0

500

1,000

1,500

2,000

2,500

FY 2017 FY 2018 YTD Q1, 2018 YTD Q1, 2019

-2.6%

-7.9%

Results by Segment

Almarai Company 2019 Q1 Earnings Presentation

Revenues by Segment Dairy &Juice• Stable market share

• Contraction in GCC markets

Bakery • Volume led improved performance

Poultry • Strong performance in Q1, through

HORECA channel expansion

Other • Infant Nutrition continues to perform

well. However, timing difference due to

rotational crops impacted the quarterly

results

Profit Attributable to Shareholders

2,357

405 421 49

2,366

430 502 55

0

500

1,000

1,500

2,000

2,500

Dairy & Juice Bakery Poultry Others

YTD Q1, 2018 YTD Q1, 2019

0.4%

6.1% 19.4%12.7%

282

40 25 (2)

270

49 42

(25)

(50)

0

50

100

150

200

250

300

Dairy & Juice Bakery Poultry OthersYTD Q1, 2018 YTD Q1, 2019

23.1%12% 11%

10% 11% 6% 8%

-4.3%

67.1%

Growth YOY by Category and Geography

Almarai Company 2019 Q1 Earnings Presentation 10

Revenue By Category Revenue By Geography

CAPEX and FCF

11

Capital Investment 2014-Present

Cash Flow Bridge Rolling 12 Months

CAPEX

• Capex continues to declines as company previous

investment cycle has come to an end

• Remaining Capex is comprised of mostly maintenance

Capex

Q1 2019 Free Cash Flow = (SAR 176M)

• OCF: +3.7B in line with profit growth however OCF is

reduced by more than SAR 1.0B due to investment in alfalfa

feed stock to manage the green forage ban in KSA from Nov

18

• ICF: -2.5B and is in line with our reduced capex guidance

• FCF: +1.2B & expected to continue to increase in the short

and medium term

2,879 3,986 4,389

2,844 1,923 1,962

23%29% 30%

20%14% 14%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2014 2015 2016 2017 2018 Last 12

MonthsNet Cash Used in Investing Activities

11

Cash Flow Bridge Rolling 12 Months

1,006

4,836 (1,133)

(264) (1,700) 1,876 (1,000)

(1,962)

(534)(748)

19 396

Cash at 31

Mar 2018

Operating Cash Flow

(Net of Working

Capital)

CAPEX - PPE

Dividend OthersCash at 31 Mar

2019(SAR 610 Million)

Perpetual Sukuk

Repayment

Loan Net

Movement

International

Sukuk

Working

CapitalSukuk Series 2

Repayment

CAPEX - Bio

Assets

Net Operating Cash Flow = 3,439 Net Sukuk Movement = (824) Net Investing Cash

Flow = (2,496)

Net Debt

Almarai Company 2019 Q1 Earnings Presentation 12

Net Debt and EBIT/EBITDA Margins

EBIT and EBITDA Margins

Net Debt Trend

Almarai leverage target is to reach 2.5x-2.7x Net Debt to EBITDA in the next 2-3 years

8,762 9,344 10,883 10,91012,659 12,618

75% 74% 81% 73% 87% 85%

2.9x 2.8x 2.9x 2.8x

3.3x 3.2x

-1

-1

0

1

1

2

2

3

3

4

2,000

7, 000

12, 000

17 ,000

2014 2015 2016 2017 2018 Last 12 Months

Net Debt Net Debt / Equity Ratio Net Debt / EBITDA

12,606 13,795 14,339 13,936 13,723 13,845

15.8% 16.4% 17.6% 18.5% 17.9% 17.8%

23.9% 24.2% 26.0% 28.1% 28.2% 28.3%

2014 2015 2016 2017 2018 Last 12 Months

Net Sales EBIT % to Net Sales EBITDA % to Net Sales

Key Share Data

Almarai Company 2019 Q1 Earnings Presentation 13

35%

24%

16%

25%

Savola

HHPrinceSultan binMohammed

PIF

Others

Key Statistics for Almarai (31 March 2019)

Share Price (SAR) 55.00

Current P/E Ratio (ttm) 27.86

Earnings Per Share (SAR) (ttm) 2.01

Market Cap (SAR Million) 55,000

Shares Outstanding (Million) 1,000

Dividend Yield 1.55%

-50%

50%

150%

250%

350%

450%

Almarai TASI

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

De

c-1

8

Ma

r-19

Year to date total shareholder's

return since listing

Appendix

Results by Segment

Almarai Company 2019 Q1 Earnings Presentation 15

SAR Million Dairy & Juice Bakery Poultry Other ActivitiesAlmarai

Consolidated

Q1 2019

Revenue 2,366 430 502 55 3,354

Depreciation and Amortisation (341) (62) (86) (34) (523)

Profit Attributable to Shareholders 270 49 42 (25) 336

Percent to Revenue of Profit Attributable to Shareholders 11.4% 11.4% 8.4% (45.3%) 10.0%

Total Assets

Growth versus Q1 2018

- Revenue - 2018 2,357 405 421 49 3,232

- Revenue Growth 0.4% 6.1% 19.4% 12.7% 3.8%

- Profit Attributable to Shareholders - 2018 282 40 25 (2) 345

- Profit Attributable to Shareholders Growth (4.3%) 23.1% 67.1% (1,128.9%) (2.6%)