Savola : 2020 Investor Presentation - 3nd Quarter 2020

Savola Group

Earnings Presentation | Q3 2020

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.

KEY HIGHLIGHTS FOR Q3 2020

SARmn (unless otherwise stated)

MarginNet Debt to Liquid Investments

*Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group's Q3 2020 financial statements **Net debt excludes lease liabilities; liquid investments refers to the market value of Savola Group's investment in Almarai and Herfy.

SalesGross Profit

+14%

5,214

5,923

+15%

1,065

1,223

+3%

5,813

6,007

+10%

1,163

1,279

-11%

5,148

4,587

-2%

1,084

1,064

+2%

16,175

16,517

+8%

3,313

3,566

20.4%

20.6%

20.0%

21.3%

21.1%

23.2%

*Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group's Q3 2020 financial statements.

20.5%

21.6%

+21%

+31%

+37%

EBITDA

0%

505

693

664

873

724

725

1,892

2,290

Net Income

9.7%

11.7%

11.4%

14.5%

+272%

6

173

14.1%

15.8%

+28%

110

410

11.7%

13.9%

+156%

222

284

866

338

0.1%

2.9%

1.9%

6.8%

4.3%

6.2%

2.1%

5.2%

GROUP - REVENUE MIX, NET DEBT & CAPEX

Revenue by Business*

Revenue by Geography

YTD-19

YTD-20

YTD-19

YTD-20

6% 3%

5% 3%

5%

11%

9%

11%

42%

38%

10% 2%

49%

54%

75%

77%

Food ProcessingRetailFood ServicesFrozen Food

KSAEgyptCentral AsiaOthers

Net Debt and Net Debt to Liquid Investments (%)**

CAPEX

Sep-19

Sep-20

YTD-19

YTD-20

Net Debt to Liquid Investments (%)

Net Debt

-14%

7,182

6,144

38%

31%

+32%

288

218

*Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group's Q3 2020 financial statements. **Net debt excludes lease liabilities, liquid investments refers to the market value of Savola Group's investment in Almarai and Herfy.

IMPLICATIONS OF EXCEPTIONAL ITEMS

Panda Retail Company

RETAIL - HIGHLIGHTS

Key Highlights

• • In Q3 2020, our business witnessed a relatively flat top-line with a marginal decrease of 1% as consumers have stocked-up prior to the VAT increase in certain categories

Store CountRevenuesProfitability

• • Store count decreased to 205 stores by end of Q3, as we have converted one supermarket in Saudi Arabia into a fulfillment center supporting the growth of our online channel

• • Revenues of SAR 9.1 bn in YTD September 2020, showing YoY growth of 12%

• • The growth is mainly driven by higher like-for-like grocery demand during the first half of the year due to the shift in consumer behavior for dine-in and pantry loading

• • YTD September 2020, reported EBITDA of SAR 844 mn, compared to SAR 432 mn last year

• • Net income reached to SAR 173 mn in YTD September 2020 driven by topline growth and improvement in gross margins, compared to losses of SAR 331 mn last year

Sales*Gross Profit

+24%

2,497

3,099

+27%

557

705

+14%

3,042

3,463

+30%

814

624

-1%

2,559

2,527

+4%

612

637

+12%

8,098

9,089

+20%

1,792

2,156

22.3%

22.8%

20.5%

23.5%

23.9%

25.2%

*Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group's Q3 2020 financial statements.

22.1%

23.7%

Adjusted metric

*Adjusted numbers include adjustments for IFRS16, reversal of accruals, store closure and projects write-off

RETAIL - NUMBER OF STORES

*a supermarket in Saudi Arabia was converted to a fulfilment center for the online channel

Savola Foods Company

FOODS - HIGHLIGHTS

Key Highlights

• • Despite a challenging macroeconomic, currency and commodity environment impacting top-line across most segments, profitability remained resilient

Volume

RevenuesProfitability

• • Volumes slightly decreased by 3% to 2,405 KMT in YTD September 2020, driven primarily by a 7% decline in sugar volumes mainly due to Egypt

• • Edibles oil volumes remained relatively flat at 1,160 KMT in YTD September 2020

• • Revenues declined by 8% vs. last year reaching SAR 6.4 bn in YTD September 2020

  • • Edibles oil revenues decreased by 10% vs. last year, largely due to Central Asia

  • • Sugar revenues declined by about 10%, mainly due to lower volumes and prices

  • • Pasta revenue increased by 6%, in YTD September 2020 compared to last year

• • EBITDA improved to SAR 620 mn in YTD September 2020 vs. SAR 589 mn last year

• • Net Income increased to SAR 256 mn in YTD September 2020, compared to SAR 253 mn last year (which included one-offs of about SAR 68 mn)

SalesGross Profit

+3%

2,408

2,476

+2%

367

375

-5%

2,350

2,230

-6%

382

359

-24%

2,185

1,653

-16%

318

268

-8%

6,943

6,358

-6%

1,066

1,002

15.2%

15.2%

16.2%

16.1%

14.5%

16.2%

15.4%

15.8%

Adjusted metric

+5%

EBITDA

+7%

+6%

207

221

8.9%

8.6%

215

228

9.2%

+3%

167

172

589

620

10.2%

7.6%

10.4%

8.5%

9.8%

Net Income*

112
70	73

+81%

106
66	59

+39%

75	76
55

+39%

253	256
185

4.7%

2.9%

3.0%

2.8%

2.5%

4.8%

3.4%

2.5%

4.6%

3.6%

2.7%

4.0%

Q1-19 Adjusted* Net Income

Q2-19 Adjusted* Net Income

*In YTD September 2019, Savola Foods recorded non-operational income of about SAR 68 million due to reversal of accruals

Q3-19 Adjusted* Net Income

YTD-19 Adjusted* Net Income

FOODS - OIL SEGMENT ANALYSIS

Note: The above includes net distribution volume and excludes specialty fat business that used to be combined with the edible oil category and is now part of the emerging categories shown in slide 24

FOODS - SUGAR SEGMENT ANALYSIS

Note: Sugar volumes and revenues include only the contribution from our consolidated sugar operations (USC and ASC), and include the net volume and revenue from our KSA sugar distribution operations

Al Kabeer Group of Companies

FROZEN FOOD - HIGHLIGHTS

Key Highlights

• • Demand for frozen food continued to show a healthy trend during Q3 2020, with

topline increasing by 27%, as consumers still showed preference for in-house dining and general preference for longer life products

RevenuesProfitability

• • Revenues increased by 29% reaching SAR 584 mn in YTD September 2020 compared to SAR 453 mn last year, largely driven by strong growth in Saudi Arabia supported by ramping-up local production and new product offerings

• • YTD September 2020 EBITDA increased by 62% compared to last year, reaching SAR 108 mn from SAR 67 mn last year

• • YTD September 2020 net income registered at SAR 83 mn, representing growth of about 64% compared to last year, where net income reached SAR 50 mn last year

Note: Revenues from the frozen food segment were reclassified for the prior period last year, YTD Sep 2019, with regards to the presentation of inter-group elimination

EBITDANet Income

+12%

23

26

18.2%

13.6%

+12%

18

20

+96%

52

27

14.7%

24.8%

+108%

20

42

+77%

29

17

11.7%

16.3%

+68%

20

12

+62%

108

67

14.7%

18.5%

+64%

83

50

14.0%

10.5%

11.2%

20.0%

8.4%

11.1%

11.1%

14.1%

Financial Summary

FINANCIALS - YTD September 2020

(all figures are in SAR millions)

Segment Wise Financials

Revenue
Food*
Oil-Mature Markets	3,075	594
Oil-Start-up Markets**	933	103
Total Oil	4,008	697
Sugar	1,772	224
Pasta	423	73
Emerging Categories***	154	8
Total Foods	6,358	1,002
Retail
KSA	9,003	2,138
Egypt	86	17
Total Retail	9,089	2,156
Herfy	778	182
Frozen Food	584	228
Real Estate	-	-
Al Marai-Savola Share	-	-
HQ/Elimination/Impairments	(291)
Total	16,517
Adjustments
Store Closure and Project Write-off
Reversals of Accrual
Net Impact of IFRS16
Adjusted Profit

YTD September 2020

Gross Profit EBIT

Net Income	EBITDA	Revenue
285	171	352	3,486	613	214
48	20	58	961	105	55
333	192	410	4,447	717	269
115	72	178	1,964	296	165
21	11	33	398	49	14
(14)	(19)	(1)	134	4	(20)
454	256	620	6,943	1,066	428
332	182	838	8,024	1,779	(133)
(7)	(9)	5	73	14	(9)
326	173	844	8,098	1,792	(141)
60	30	190	962	293	180
93	83	108	453	161	55
(7)	(7)	(7)	-	-	13
569	569	569	-	-	518
(1)	(62)	(236)	(33)	(281)	-	(56)
3,566	1,432	866	2,290	16,175	3,313	997
-
(21)
71
916

YTD September 2019
Gross Profit EBIT	Net Income	EBITDA
125	279
34	65
159	344
123	226
0	26
(29)	(7)
253	589
(326)	430
(6)	2
(331)	432
146	302
50	67
13	13
518	518
(311)	(29)
338	1,892
17
(68)
82
369

* All the numbers are rounded for the purpose of presentation and have been represented under different categories ** Start-up markets include Algeria, Morocco and Sudan *** Includes specialty fats, seafood, croissant...etc.

Note: Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group's Q3 2020 financial statements.

Revenues from the frozen food segment were reclassified for the prior period last year, YTD Sep 2019, with regards to the presentation of inter-group elimination

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