Savola Group

Earnings Presentation | Q3 2023

www.savola.com

DISCLAIMER

This presentation might contain forward-looking statements which may be identified by the use of words like "plans,"

"expects," "will," "anticipates," "believes," "intends," "projects," "estimates" or other words of similar meaning. All

statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, market position, expenditures, and financial results, are forward looking statements.

Forward-looking statements are based on certain assumptions and expectations of future events. The Savola Group (Savola or Group), its subsidiaries and its affiliates (the "Companies") referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed, and it may not contain all material information concerning The Savola Group and its affiliates. We do not make any representation regarding and assume no responsibility or liability for the accuracy or completeness of, or any errors or omissions in, to any information contained herein.

2

Savola Group Key Highlights

3

Savola Group - YTD Sep 2023 Highlights

Resilient Group Performance Continues

  • For YTD 2023, Savola Group continued its resilient performance backed by improvement in Panda's results despite challenges in some of Savola Foods' territories and segments
  • Panda showed a positive like-for-like (LFL) growth with improved margins which led to a significant decline in loss compared to last year. The CXR program continues to yield positive outcomes in terms of higher sales intensity in completed stores. Q3 2023 net income turned positive
  • Savola Foods reported strong operating income, driven by higher contribution margin and better product mix strategies in YTD 2023 period despite drop in sugar segment volumes and rolling contract losses

Profitability

  • Group's gross profit reached SAR 4.1 billion, 10% higher than LY. The margin increased from 17.2% to
    20.0% due to improved margins across all managed portfolio companies
  • The Group recorded EBITDA of SAR 2.5 billion compared to SAR 2.2 billion last year
  • Net income reached SAR 672 million compared to SAR 648 million last year. The increase is primarily attributable to the improved gross margins both in Savola Foods and Panda; partially offset by higher financial charges due to increase in the benchmark interest rates

4

Group Financial Highlights

5

Savola Group - Consolidated Financial Highlights

Margin

SAR in millions

Q1-22

Q1-23

Q2-22

Q2-23

Q3-22

Q3-23

YTD-22YTD-23

▪

During Q3 2023, Group sales

declined primarily due to lower

revenues in Savola Foods,

+4%

Sales

7,489

7,814

-12%

6,888

6,093

-10%

7,072

6,351

-6%

21,450

20,259

partially offset by the increase

in Panda sales

▪

For YTD Sep 2023, Group

reported a YoY decline in sales

primarily due to the drop in

Savola Foods (decline in volume

and pricing along with other

factors) partially offset by

increase in Panda sales

▪

Group gross profit increased

+17%

Gross Profit

1,285

1,502

17.2%

19.2%

0%

1,248 1,247

18.1% 20.3%

+14%

1,149

1,310

16.2%

20.6%

+10%

3,682

4,059

17.2%

20.0%

YoY both in YTD 2023 as well as

Q3 2023 due to higher margins

both in Savola Foods and Panda

Note: numbers are rounded

6

Savola Group - Consolidated Financial Highlights

Margin

SAR in millions

Q1-22

Q1-23

+29%

Q2-22Q2-23Q3-22Q3-23

YTD-22

YTD-23

+11%

▪

During Q3 2023, net income

witnessed YoY drop mainly due

to reduced profits at Savola

Foods and share of profit from

996

772

EBITDA

10.3%

12.7%

+45%

393

Net Income

271

3.6%

5.0%

-5%

751

710

10.9%

11.7%

-38%

214

132

3.1%

2.2%

+10%

682

749

9.6%

11.8%

-10%

164

147

2.3% 2.3%

2,455

2,205

10.3%

12.1%

+4%

672

648

3.0%

3.3%

associates, higher financial and

zakat charges. Panda however

reported profit in Q3 2023

▪

However, in YTD 2023 net

income grew YoY primarily

driven by strong performance

in Savola Foods and Panda

Note: numbers are rounded

7

Savola Group - YTD Sep 2023 Revenue & Net Income Bridge By Business

Revenue Bridge by Business

SAR in millions

-6%

21,450

(1,385)

34

(53)

(39)

20,259

251

YTD Sep

Panda

Others /

YTD Sep

2022

Elimination

2023

Net Income Bridge by Business

SAR in millions

+4%

(5)

150

(67)

19

-6%

(87)

672

648

631

14

(41)

Reported

Panda

Almarai Others / Reported

One-Off

Adjusted

YTD 2022

and Kinan Elimination YTD 2023

Adjust.1

Profit

Managed Portfolio

Managed Portfolio

Note:

1) One-off adjustments include custom duty refund of SAR 23 million and gain on Savola Morrocco divestment of SAR 18 million

Note: numbers are rounded

8

Group - Revenue Mix, Net Debt & Capex

SAR in millions

Revenue by Business1

Revenue by Geography

YTD-22

YTD-23

YTD-22

YTD-23

7%

4%

4%

11%

2%

9%

3%

8%

35%

38%

16%

55%

15%

58%

65%

68%

Savola Foods

Panda

Herfy

Al Kabeer

Arabia

Egypt

Central Asia

Others3

YoY Growth

-11%

3%

-6%

7%

-1%

-1%

-4%

-41%

Loans and Net Debt2

CAPEX

Sep-22

Sep-23

Net Debt

7,649

6,828

Total Loans

9,359

9,739

7,405

8,342

1,954

1,396

KSA

Non-KSA

Note 1) Revenue breakdown is based on gross sales

  1. Net debt excludes lease liabilities
  2. Others impacted due to the loss of sales from Morocco exit and suspension of operations in Sudan

YTD-22

YTD-23

605

9%

19%

570

2%

70%

Savola Foods Panda Herfy Al Kabeer

Note: numbers are rounded

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Savola Foods Company

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Disclaimer

SAVOLA Group Company SJSC published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 07:06:10 UTC.