INVESTOR PRESENTATION RESULT OVERVIEW Table of Content
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INVESTOR PRESENTATION RESULT OVERVIEW Table of Content 3 2019 Highlights 7 2019 Business overview 17 2019 Financials 2019 Highlights 2019 Highlights Appointment of Mr. Fadi Majdalani as SACC renewed it’s in-flight catering SACC signed a contract with Saudi SACC signed a 5 years contract with an independent board member at agreement with Saudi Arabian Arabian Airlines on 29 Dec 2019 for Haramain High Speed Railway “HHSR” SACC, in place of H.E. Mr. Fahd bin Airlines, which ended on 31 Dec 2019 design, construct and operate Al on 01 Jul 2019 for providing Food and Abdulmohsen Al-Rasheed, who and is renewed to be effective for a Fursan Domestic lounge at the new beverage. The provisional value is submitted his resignation to the board period of 10 years representing the King Abdulaziz International Airport in estimated to be SAR 85 million. on 05 Dec 2019. This appointment took longest contractual period between Jeddah. The term of the contract shall effect from 06 Jan 2020 throughout the the two parties in relation to inflight be for a term of (10) years. The remaining period of the current board catering services, confirming the provisional value is estimated to be term that ends on 26 Jan 2022. depth of partnership and mutual trust SAR 308 million. between the two parties. The renewed contract took effect starting from 01 Jan 2020 through 31 Dec 2029. The provisional value of the agreement is SAR 12 billion. 2019 Highlights SACC HAVE OBTAINED VARIOUS CERTIFICATES (NEW & RENEWAL) DURING THE YEAR 2019 SUCH AS: Gold classification for the 3rd GACA R 68 for Ramp side GACA R 151 Ground Service Provider External Surveillance and year in row on Mowaamah work permit. Certificate (re-certification) - JED Station. re-certification: Certification - by Ministry of ✓ ISO 9001:2015 Labor. ✓ ISO 22000:2005 ✓ HACCP ✓ HALAL ✓ OHSAS 18001:2007 35 units of new high-loader trucks added to the fleet during year 2019. Board of Directors 27 Jan 2019 Mohammed Al-Sarhan Chairman Sami Al-Hokair Jonathan Stent-Torriani Raed Al-Mudaiheem Khaled Al-Hukail Abdulkarim Essolami Hasan Al Jabri Yousef Al Yousefi Fadi Majdalani Vice Chairman Board Member Board Member Board Member Board Member Board Member Board Member Board Member 2019 Business Overview In-Flight Catering In Flight Catering Airport Lounges Equipm. Logistics Menu Planning CPU Inflight catering (IFC) is the core 2,6m Pax in 15 lounges. Over 500 active SKUs In addition to Catering 27m meals capacity business of SACC. 63% of SACC for SV. services, IFC provides supporting all IFC, Hajj turnover is generated by IFC. menu planning and and Umrah and other chef-on-board service. business. 40m meals served on 217k flights. IFC serves over 70 regular airline clients and over 70 other airline clients. Operations are carried out from 6 locations (Jeddah, Riyadh, Dammam, Medina, Cairo, and Neom). IFC also supports other SACC divisions through its’ units and Central Production Unit (CPU, in Riyadh). Catering & Facility Business & Industries Remote Sites Camp Management Laundry Services 54 sites in Saudi Arabia. 6 clients served in 22 Staff Services can KAEC (JED) and KFMC locations. accommodate 8,000 staff (RUH) with a total in 4 cities. capacity of 60.5 tons per day. Railway Hajj & Umrah Baggage Services Station outlets and 705,538 meals to 100,664 12K baggage capacity. on-board sales for pilgrims. SAR, SRO and HHR. Retail (SKYSALES) On-Board Ground Shops E-commerce On-board sales for 48 ground shops. 2,1 MSAR turnover 2018. Saudia, Flynas and 28,7 MSAR turnover 2019. Flyadeal, providing 447 SKUs. Flights & Meals YE-2018 YE-2019 N u m b e r of flights Saudia 137 138 Other Airlines 57 60 Private 26 19 Total 220 217 N u m b e r of meals Saudia 32,838 33,147 Other Airlines 6,597 6,955 Private 540 478 Total 39,975 40,579 All displayed numbers are expressedin thousands Inflight Meals Capacity SAR (millions) 70 61 60 55 50 40 41 40 30 20 10 0 2018 2019 Inflight Capacity Total No. of Meals CPU Meals Capacity SAR (millions) 30 27 27 25 20 16 15 15 10 5 0 2018 2019 CPU Capacity Total No. of Meals Dependency from Saudia Increases SACC’S DEPENDENCY FROM SV HAVE NOT CHANGED AGAINST 2018 VS 2019 2018 2019 SV share of net sales 66% 66% Includes Saudi Arabian Airlines (catering, menu planning, Al Fursan lounges, Saudia Cargo and Saudia Private Aviation) Besides In-flight Catering services, SACC provides Onboard equipment, Lounge services and Skysales onboard sales. SACC Staff Count YE-2018 YE-2019 Saudi Males 1329 1278 Saudi Females 247 295 Total Saudis 1576 1573 Expatriates 2857 2794 Total permanent staff 4433 4367 Saudization rate at the end of year 2019 was 34.27% (source Ministry of Labor) Statistics Particulars YE 2018 YE 2019 Total number of inflight meals catered 39,975,404 40,579,467 Total number of flights catered 220,129 flights 217,060 flights Total number of Airline clients SAUDIA + 81 other airlines SAUDIA + 74 other airlines Total number of Business Lounges 14 (7 Intl, 5 Dom, & 2 Others) 15 (8 Intl, 5 Dom, & 2 Others) Total number of Lounges guests 2,591,102 2,592,639 Total number of Non-Airline clients 72 ( 43 Food & 29 Laundry) 67 ( 45 Food & 22 Laundry) 2019 Financials 2019 Financial Summary Net sales increased Total comprehensive Earnings per share Cash and cash by 6% from 2,036 income decreased by before zakat and equivalent have MSR to 2,156 MSR. -0.8% from 464 MSR income tax increased increased from 147 to 460 MSR. from 5.60 SAR to 5.66 MSR to 189 MSR SAR. 2019 Key Financials 2019 Key Financials Compared To Previous Years Revenues Shareholders equity SAR (billions) 2019 2,156 SAR (billions) 2019 1,306 2018 2,036 2018 1,301 Net profit 2019 464 Earning per share 2019 5.66 SAR (millions) SAR 2018 459 2018 5.60 Net profit % 2019 22% 2018 23% Revenues SAR (millions) 2,500 2,156 2,035 2,000 1,524 1,460 1,500 1,000 500 232 171 178 190 183 177 37 40 - 2018 2019 Inflight Catering Business Lounge Skysales Non-Airlines Other Revenues Total Net Income SAR (millions) 500 490 480 470 464 459 460 450 440 430 2018 2019 Source: Financial Statements Cash Flow SAR (millions) +28% -20.1 891 35 -65 --60.0 -65 91 159 -560 464 275.3 --16.0 81 189 147 4 Cash balance Net Income Depreciations Provisions and Change ZIT paid Operating CAPEX Dividends paid Lease Others Cash balance 1.1.2019 accruals, net in WoC cashflow liabilities paid 31.12.2019 Operating cash flow was +744 MSAR. WOC increased by 65M. Share Price Development Shareholders as of 2019 26,000 190.00 23,000 170.00 9.4 20,000 8.6 150.00 17,000 130.00 14,000 110.00 Tadawul Index 46.3 90.00 11,000 SACC closing share price 70.00 8,000 35.7 50.00 5,000 Jul-19 Jun-19 Oct-18 Oct-19 Apr-19 Sep-19 Dec-18 Dec-19 Aug-19 Nov-18 Nov-19 Mar-19 May-19 Public Alhokair SCCL Saudia IPO 9th Jul-12 T H A N K Y O U.