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Obour Land For Food Industries Investor Presentation March 2019

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Page 1: Obour Land For Food Industries

Obour Land For Food Industries

Investor Presentation

March 2019

Page 2: Obour Land For Food Industries

2

Table of Contents

I. Introduction to Obour Land

II. Key Investment Highlights

III. Appendix

Page 3: Obour Land For Food Industries

3

Disclaimer

This presentation and any materials distributed in connection with this presentation are not directed or intended for distribution to or use by, any person or entity that is a citizen or resident located

in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to the law or regulation of that jurisdiction or which would require any

registration or licensing within such jurisdiction. Persons who come into possession of any document or other information referred to herein should inform themselves about and observe any such

restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions.

This presentation includes forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. These statements contain

the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “should”, “could”, “aim”, “target”, “might” and words of similar meaning. All statements other than statements of historical

facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations are

forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or

achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements

are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. They speak only as at

the date of this presentation, and actual results or performance may differ materially from those expressed or implied from the forward-looking statements. In addition, the forward looking

statements are not intended to give any assurances as to future results and statements regarding past trends should not be taken as a representation that they will continue in the future. The

Company, the Banks and their respective advisers each expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained

herein to reflect any change in the Company’s expectations or any change in the events, conditions or circumstances on which any such statement is based, unless otherwise required by law. The

Company does not undertake to review, confirm or release publicly or otherwise to investors or any other person any revisions to any forward-looking statements to reflect events occurring or

circumstances arising after the date of this presentation.

This presentation contains non-EAS measures (such as EBITDA). These measures have limitations as analytical tools and should not be consideration in isolation or as substitutes for analysis of

the Company’s results as reported under EAS.

This presentation, and any matter or dispute (whether contractual or non-contractual) arising out of it, shall be governed and construed in accordance with Egyptian law and the Courts of Cairo shall

have exclusive jurisdiction in relation to any such matter or dispute.

By attending this presentation and/or receiving this presentation document, you are agreeing to the terms and conditions set forth above.

Page 4: Obour Land For Food Industries

I. Introduction to Obour Land

Page 5: Obour Land For Food Industries

5

Obour Land at a Glance

Group Overview

Founded in 1997 by Eng. Mohamed Hamed Sherif (Executive Chairman) and Mr. Ashraf Mohamed Hamed Sherif (Vice Chairman and

CEO), Obour Land For Food Industries S.A.E ("Obour Land" or the “Company”) is a leading white cheese producer, a traditional and

highly consumed staple good, offering 82 SKUs

The Company commenced operations in 1999 with only one production line of loose white cheese producing 400kg of cheese per day.

In 2007, it introduced its first Tetra Pak product and now it operates 15 Tetra Pak production lines in addition to one plastic tub line with

a combined production capacity of 194.1 thousand tons per annum ("ktpa"). Additionally, the Company added one production line for

processed cheese and one mozzarella cheese with a combined production capacity of 7.2 ktpa

Obour Land boasts a robust operational platform backstopped by a solid brand equity that is able to accommodate additional F&B

product categories that complement the current product offering; three production lines for juice (interchangeable between juice and

milk) and one production line for milk products which have started production in December 2017 with a combined production capacity

of 126 million liters per annum

The Company owns seven land plots in Obour industrial city located in the outskirts of East Cairo, with a total area of approximately

26,412sqm of which only two are being used for the production of white cheese and the remaining five will be used for growth,

diversification and storage. Additionally, it owns 3,875sqm of land in 6th of October industrial city in West Cairo and 396sqm in Borg El

Arab industrial zone in the outskirts of Alexandria city

The Company has a fleet of 423 vehicles serving its direct distribution network that is constituted of 30 branches in 14 governorates in

addition to the Company’s head office in Obour City, as well as indirect distribution to wholesalers who cover all parts of Egypt

The Company has received four quality certifications for its utmost commitment to quality, health and safety: ISO 9001, OHSAS 18001,

ISO 14001 and ISO 22000

The Obour Land brand has grown to become the leading white cheese brand in the local market commanding 42% market share

Shareholding Structure (31 Dec 2018) Board of Directors

Net Revenue (EGP mn)

EBITDA, Margin (EGP mn, %)

Net Income, Margin (EGP mn, %)

Mohamed Hamed Sherif Executive Chairman

Ashraf Mohamed Sherif Vice Chairman & CEO

Ayman Mohamed Sherif MD for Sales & Marketing

Ghada Mohamed Sherif Member

Abeer Mohamed Sherif Member

Mohamed Yehia Abdel Hamid Independent Member

Said Mostafa Said Independent Member

2014-2018 CAGR%Source: Company financial statements

▲27%

▲57%

▲65%

927 1,170

1,450

2,066 2,404

-

50 0

1, 000

1, 500

2, 000

2, 500

3, 000

2014 2015 2016 2017 2018

61 133

234344 365

7%

11%

16% 17% 15%

0%

2%

4%

6%

8%

10 %

12 %

14 %

16 %

18 %

-

50

10 0

15 0

20 0

25 0

30 0

35 0

40 0

2014 2015 2016 2017 2018

32.0891.85

161.99

243.20 236.223%

8%

11%12%

10%

0%

2%

4%

6%

8%

10 %

12 %

14 %

-

50

10 0

15 0

20 0

25 0

30 0

2014 2015 2016 2017 2018

Sherif Family60%

Russel Investment Co

4%

Blakeney 3%

Heviben LP3%

Norges Bank3%

Sanlam 1%

Others26%

Page 6: Obour Land For Food Industries

6

Sponsorship of the Egyptian Football Cup,

one of the most viewed sports events in Egypt

Sponsorship of the Egyptian Premier League

Acquisition of the SAP ERP system to be

implemented by 2017

Awarded ISO 14001 quality assurance

certification

Introduction of the

“on the go” 80gm

carton pack size

Sponsorship of Al

Zamalek Football

Club which was

founded in 1911

and boasts one of

the largest fan

bases in the Middle

East

Corporate Evolution

Corporate Evolution

1 Gross sales include discounts provided to wholesalers and retailers

Gross Sales

(EGP mn)1

Obour Land was

established with a

paid in capital of EGP

1mn

Commencement of

commercial

operations

4

2000 2001 2004 2006 2007 2008 2010 2011 2012 2013 2014 2015

6 7 10 13 16 31 37 29 56 89 359 932 1,175

1999

June-

2018

Paid in

Capital

Company Snapshot

Workforce CapacityGross

Sales1 # of SKUs FleetDistribution

Centers

EGP 1mn 60400 KGs

Per DayEGP 763K 4 10 1

Paid in

CapitalWorkforce Capacity

Gross

Sales1 # of SKUs Fleet

EGP

400mn1,850

400 Tons

Per Day

EGP

2,417mn82 423 30

Commenced

relationship with Tetra

Pak as the strategic

supplier of production

lines and packaging

material

Introduction of the first

carton pack products in

500gm and 250gm sizes

Introduction of the

125gm carton pack

size

Awarded OHSAS

18001 quality

assurance

certification

Awarded ISO

9001 and 22000

quality

assurance

certifications

Implementation of

the Comsys

system to

manage

resources

2002 2003 2005 2009

204 532

Distribution

Centers

20172016

1,459 2,077

Started

exporting

to Jordan,

Palestine

and UAE

Introduced

new products

Juice & Milk

2,417

2018

Introduced

Processed

Cheese

Page 7: Obour Land For Food Industries

II. Key Investment Highlights

Page 8: Obour Land For Food Industries

8

Expansion Plans

Key Investment Highlights

State-of-the-Art Facilities

Penetrating New Markets

Strong Supply Chain and Sales Network with Unmatched Reach

Stellar Financial Performance with Minimal Leverage

1

2

4

5

6

An Attractive Opportunity For Investors Seeking Growth and Value

Strong Brand Equity Buoyed by a Developing and Vibrant High Quality White Cheese Product Mix

3

Page 9: Obour Land For Food Industries

9

Strong Brand Equity Buoyed by a Developing and Vibrant High Quality White Cheese Product Mix

Key Propositions

Iconic Staple Goods

Through its strong brand,

Obour Land offers white

cheese, which is a

traditional staple good that

is consumed by customers

across the socioeconomic

spectrum

Premium Quality

Obour Land offers top

quality products, in terms of

superior and consistent

flavors, while adhering to

the highest health and

safety standards

Affordability

The Company’s products

are economically priced

allowing them to be

affordable to the majority of

the Egyptian consumers

Diversified Raw Material

Sourcing

Obour Land relies on

premium raw materials

sourced from various

geographies from both

local and international

suppliers

Product Portfolio Synopsis

Brand

Product Family

Launch Date

SKUs

Production Capacity

(TPA)

2018 Utilization Rate

2018 Contribution to

Sales

1

Product Portfolio

Plastic

Tub3

Carton Pack1

80gm

Carton

Pack

2015

1

4,320

26%

1.1%

125gm

Carton

Pack

2011

4

23,625

60%

14.6%

250gm

Carton

Pack

2007

4

72,000

79%

54.2%

500gm

Carton

Pack

2007

7

54,000

49%

25.8%

Plastic

Tub

1999

24

4,130

61%

2.9%

80g Feta 125g Feta 125g Olive 125g

Istanbully

250g Olive250g Feta 250g

Istanbully

500g Olive 500g

Istanbully

500g Feta

1kg Khazeen 1kg

Istanbully

1kg Feta

1kg Double

Cream

1kg

Barameely

1kg

Istanbully

Vegetable

Fat

Natural

Fat1kg Talaga

Source: Company1Other Carton Pack SKUs include 1 Kg Istanbully, 1 Kg Olive, 1 Kg Chili, 500gm Feta slim, 500gm Olive slim, 500gm Chili slim, 500gm Istanbully slim, 250gm Chili slim, 125gm Chili slim2 Other plastic tubs SKUs include 400gm Istanbully, 400gm Feta, 400gm Khazeen, 400gm Talaga, 400gm Istanbully Full Cream, 400gm Double Cream, 400gm Barameely, 1.5kg Feta Pepper, 11kg Feta and 12kg Low Salt

1 Kg

Carton

Pack

2017

4

36,000

4%

1.4%

1 Kg Feta

Page 10: Obour Land For Food Industries

10

18.0 11.3

11.3 5.6 5.6

11.3 13.5

18.0 6.8 4.3

11.3 13.5

5.6

18.0

36.0 4.1 194.1

-

50 .0

10 0.0

15 0.0

20 0.0

25 0.0

Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Plastic tubs Total

State-of-the-Art Facilities

State-of-the-art Facilities

2

500gm 250gm 250gm 125gm 125gm 250gm 250gm 500gm 125gm 80gm 250gmProduction Line

Package Size

2007 2007 2011 2011 2013 2013 2013 2014 2015 2015 2015Launch Date

Total Annual Capacities (ktpa)

15Carton Pack Production Lines

Utilized Land Area (sqm) 6,120

194.1 ktpaTotal Capacity

Facility Location Obour City

Production Facility Snapshot Accreditation Strategic Relationship with Tetra Pak

Potential For Growth

The Company has a remaining 20,292 sqm

of unutilized land in Obour City which will

be utilized to venture into new product

segments and as storage space

Tetra Pak is the sole supplier of the Company’s

production lines since 2007

Moreover, Tetra Pak provides the Company with a

range of benefits including marketing support,

growth support, production lines maintenance and

cash discounts

As a result, the Company was awarded the

certificate for Tetra Pak’s fastest growing customer

in Egypt from 2010 – 2015

TetraPak Egypt presents

this certificate to

For being the Fastest

Growing Customer in

Egypt 2010-2015

N/A

1999

250gm

2016

14000

Marketing Support Growth Support

Maintenance Support Cash DiscountsRelaxed Payment

Terms

125gm

2017

500gm

2017

1000gm

2017

Source: Companies’ Filings

59.6 ktpa additional capacity in

2017

Page 11: Obour Land For Food Industries

11

Penetrating New Markets3

Source: Companies’ Filings

In December 2017, the Company started operating three new Tetra Pak juice lines with a total capacity of 99.0 million liters and a Tetra Pak milk

production line with a capacity of 27.0 million liters where 3 lines are interchangeable and can produce either milk or juice. After 1 year of

commercial production, Obourland’s new products have achieved significant results in a very competitive and fragmented markets. Obourland

has acquired around 1 to 1.5% of the market share in milk and juice markets generating gross sales of EGP 109mn in FY2018 representing

4.5% of the company’s total revenues.

9.0

36.0

54.0 99.0

27.0

-3 0.0

20 .0

70 .0

12 0.0

17 0.0

22 0.0

Juice 200ml Juice 250ml Juice 1L Total Juice Milk 500ml

Total Annual Capacities (ktpa)

3.6

3.6 7.2

0

2

4

6

8

10

12

14

16

Mozzarella Cheese Processed Cheese Total Mozzarellla andProcessed Cheese

In an effort to diversify its cheese product offering, in

March 2018 the Company started the commercial

production of the processed cheese with a capacity of

3.6 ktpa. The Company plans to introduce mozzarella

cheese in 1Q2019 with an estimated capacity of 3.6

ktpa.

Capitalizing on the company’s strong distribution

network using direct sales vehicles, the Company’s

sales agents are reaching out to retail shops to create

demand on the milk and juice products based on

customer satisfaction due to quality and taste rather than

discounts or lower prices. In 2018, distribution centers

reached 30 branch while total vehicles reached 423

vehicle out of which 70 vehicles are allocating only for

milk and juice.

Page 12: Obour Land For Food Industries

12

Expansion Plans4

Dairy Farming

In mid 2017, Obour Land has decided to venture into dairy farming on the back of the multiple synergies to be gained from vertical

integration that will compensate for the shortage and high costs of raw milk that represents a major feed component in UHT milk

production. The farm is expected to supply around 30-50% of the Company’s requirements of raw milk.

In September 2017, the company has acquired a land plot that extends over 42 fedans that is planned to inhabit 2,500 head of cattle of

Holstein breed that will be imported from Germany and expected to produce 60 tons/day of raw milk.

The project is expected to be operational within 1 year with annual production of milk to reach approximately 20,000 tpa with an

investment cost of EGP 255mn.

The project is financed through 50% equity and 50% debt from EBRD bank amounting to USD 7mn.

42 Fedans

2,500 Heads of

Cattle

60 Tons/

Dayof Milk

EGP

255mnInvestment

Page 13: Obour Land For Food Industries

13

Sales Breakdown by Channel Obour Land’s

management controls

the pricing of its

products by:

- Controlling

quantities supplied

to retailers through

sales

representatives

- Minimizing sales to

key accounts,

which typically

command high

discounts and

lengthy credit terms

Moreover, the

Company grew its

fleet in 2018 to reach

423 vehicles and

opened 7 new

distribution centers to

reach 30 branch to

accommodate its

expansion plans

2014-2018 CAGR%Source: Company

Strong Supply Chain and Sales Network with Unmatched Reach5

SharkiaMenoufia

Kafr El SheikhBeheira

Dakahlia

Qalyubia

Robust Distribution Platform

Indirect Distribution Wholesalers

North Sinai

Suez

Distribution Centers and Distribution Wholesalers

# Fleet

▲20%

Maximum Handling

Capacity (Tons/Day)

▲21%

60%66%

72%67% 70%

37%29%

26%31% 27%

3% 5% 2% 2% 3%

0.14% 0.45% 0.18%

2014 2015 2016 2017 2018

Wholesalers Retailers Key Accounts Exports

191 201 201

345

423

90

14 0

19 0

24 0

29 0

34 0

39 0

44 0

2014 2015 2016 2017 2018

555 605804

1,380

1,692

25 0

45 0

65 0

85 0

10 50

12 50

14 50

16 50

18 50

2014 2015 2016 2017 2018

Page 14: Obour Land For Food Industries

14

Stellar Financial Performance With Minimal Leverage

Net Revenues1 (EGP mn)

6

Gross Profit2, Margin (EGP mn, %) EBITDA, Margin (EGP mn, %)

Net Income, Margin (EGP mn, %) Net Cash3 (Net Debt) Cash Conversion Cycle (Days)

1 Net revenues are net of discounts2 Gross profit excludes depreciation expense included in the cost of sales3 Debt obligations include credit facilities, liabilities for the purchase of machinery and dividends payable

Strong and consistent

revenue growth, driven by

the addition of eight

production lines in the

period from 2013 to 2017

with a total capacity of

95.5 ktpa, supported by

increased cheese

consumption patterns

Stabilization in the prices

of key raw materials (after

a period of unprecedented

price hikes) increased

profitability margins, with

a benign commodity

prices outlook ensuring

profitability margins

sustainability

Key factors contributing to

net cash drop in 2016 and

2017:

- Debt acquired to

finance new

expansions

- EGP floatation effect on

foreign currency debt

2014-2018 CAGR%

CCC increased in 2016 on the back of a pile up in raw

materials inventory, purchased at low price points

▲27% ▲57% ▲57%

▲65%

927

1,170

1,450

2,066

2,404

-

50 0

1, 000

1, 500

2, 000

2, 500

3, 000

2014 2015 2016 2017 2018

91 185

363

486 54910%

16%

25% 24%23%

0%

5%

10 %

15 %

20 %

25 %

30 %

-

10 0

20 0

30 0

40 0

50 0

60 0

2014 2015 2016 2017 2018

32.08

91.85

161.99

243.20 236.223%

8%

11%12%

10%

0%

2%

4%

6%

8%

10 %

12 %

14 %

-

50

10 0

15 0

20 0

25 0

30 0

2014 2015 2016 2017 2018

61

133

234

344 3657%

11%

16%17%

15%

0%

2%

4%

6%

8%

10 %

12 %

14 %

16 %

18 %

-

50

10 0

15 0

20 0

25 0

30 0

35 0

40 0

2014 2015 2016 2017 2018

13

55

88

55 59

-

10

20

30

40

50

60

70

80

90

10 0

2014 2015 2016 2017 2018

64 65

(199)

(133)(90)0.4x

0.2x

(0.5x)

(0.2x)(0.1x)

(0 .6x)

(0 .4x)

(0 .2x)

0.0 x

0.2 x

0.4 x

0.6 x

(2 50)

(2 00)

(1 50)

(1 00)

(5 0)

0

50

10 0

2014 2015 2016 2017 2018

Page 15: Obour Land For Food Industries

III. Appendix

Page 16: Obour Land For Food Industries

16

Revenue Build-up

Gross Revenue Build- Up

2014-2018 CAGR

Source: Company financials

Carton Pack Plastic Tubs Total

Volume

(ktpa)

Average

Price

(EGP/ Kg)

Revenues

(EGP mn)

▲13% ▲-8% ▲12%

▲13% ▲8% ▲12%

▲27% ▲-1% ▲25%

62.2

83.4 93.2 94.2

100.4

-

20 .0

40 .0

60 .0

80 .0

10 0.0

12 0.0

2014 2015 2016 2017 2018

3.6 3.4

4.1

3.0

2.5

2014 2015 2016 2017 2018

66

87 97 97

103

-

20

40

60

80

10 0

12 0

2014 2015 2016 2017 2018

13.9 13.3 14.9

21.2 22.3

-

5. 0

10 .0

15 .0

20 .0

25 .0

2014 2015 2016 2017 2018

19.4 20.6 17.5

24.5 26.4

-

5. 0

10 .0

15 .0

20 .0

25 .0

30 .0

2014 2015 2016 2017 2018

14.2 13.5 15.0

21.3 22.4

-

5. 0

10 .0

15 .0

20 .0

25 .0

2014 2015 2016 2017 2018

863 1,105

1,387

1,998 2,238

-

50 0

1, 000

1, 500

2, 000

2, 500

2014 2015 2016 2017 2018

70 70

72

75

66.58

62

64

66

68

70

72

74

76

2014 2015 2016 2017 2018

932 1,175

1,459

2,073 2,305

-

50 0

1, 000

1, 500

2, 000

2, 500

2014 2015 2016 2017 2018

%

Page 17: Obour Land For Food Industries

17

Raw material costs represent the biggest

portion of COGS, contributing ~58% to

sales and 75% to COGS.

Milk powder and protein increased as a

percentage of sales in 2014 on the back

of a significant hike in their prices

Direct industrial expenses (primarily

direct overheads and labor costs) are

relatively small as the company is neither

an intensive energy user nor a labor

intensive business and, therefore, the

recent hike in energy prices and

minimum wage laws did not have a

material impact on the company’s cost

base

Others costs have increased significantly

in 2018 as it includes the raw materials

of the new products milk and juice.

COGS Build-up

COGS Breakdown (EGP mn)

Gross Profit2, Margin (EGP mn, %)

Raw Materials Breakdown (EGP mn)Cost of Sales Breakdown (EGP mn)1

Source: Company financials1 Cost of sales excludes depreciation expense2 Gross profit excludes depreciation expense included in the cost of sales

91 185

363 486 54910%

16%

25% 24%23%

0%

5%

10 %

15 %

20 %

25 %

30 %

-

10 0

20 0

30 0

40 0

50 0

60 0

2014 2015 2016 2017 2018

716813 852

1211

1400106150 168

295

352

19

2368

95

106

2014 2015 2016 2017 2018

Raw Materials Packaging Industrial Expenses Change in Inventory

77%

11%

2%

1%

70%

0%

13%

2%

0%

59%

12%

5%

59%

14%

5%

1%

58%

0%

15%

4%

% of Sales

397 417 418 573568

80110 149

133

147

101 173 175336

329

30 29 36 50

72

107 85 74 119 283

2014 2015 2016 2017 2018

SMP & Milk Protein Concentrate Butter Oils GDL Others

% of Sales

3%

12%

11%

9%

43% 36%

9%

15%

2%

7%

29%

10%

12%

2%

5%

28%

6%

16%

2%

6%

24%

6%

14%

3%

12%

Page 18: Obour Land For Food Industries

18

Income Statement

Source: Company Financial Statements1 Excludes depreciation expense2 The provisions for expected claims are related to the Company’s expected tax claims

EGP 2014 2015 2016 2017 2018

Revenues 926,979,665 1,169,837,613 1,450,122,574 2,065,516,703 2,403,541,039

Export Rebates - - - 558273

Cost of sales1 -835,651,737 -985,062,271 -1,087,501,189 -1,579,642,506 -1,854,824,403

Gross Profit 91,327,928 184,775,342 362,621,385 486,432,470 548,716,636

Gross Profit Margin 10% 16% 25% 24% 23%

Selling and marketing expense1 -26,702,550 -46,645,944 -117,932,531 -122,045,740 -156,462,756

General and administrative expense1 -3,945,846 -4,674,091 -10,847,153 -20,079,451 -27,607,376

EBITDA 60,679,532 133,455,307 233,841,701 344,307,279 364,646,504

EBITDA Margin 7% 11% 16% 17% 15%

Depreciation -8,042,793 -10,044,891 -13,301,946 -18,445,255 -37,802,074

40% 25% 32% 39% 105%

EBIT 52,636,739 123,410,416 220,539,755 325,862,024 326,844,430

EBIT Margin 6% 11% 15% 16% 14%

Other income (loss) 201,794 2,522,059 2,109,459 579,535 3,830,747

Provision for expected claims2 -6,028,106 -5,730,770 -2,356,796

(Loss) gain from disposal of fixed assets 198,825 -51,050 287,206

Foreign exchange difference -178,319 913,605 -4,922,292 5,110,467 -830,775

Interest income 177,642 1,253,987 1,981,885 6,066,743 7,497,632

Interest expense -911,101 -2,258,525 -7,955,818 -23,782,592 -31,871,971

EBT 46,097,474 120,059,722 209,683,399 313,836,177 305,470,063

Income tax -14,014,480 -28,208,203 -47,695,427 -70,639,403 -69,248,899

Net Profit 32,082,994 91,851,519 161,987,972 243,196,774 236,221,164

Net Profit Margin 3% 8% 11% 12% 10%

Page 19: Obour Land For Food Industries

19

Balance Sheet

Source: Company Financial Statements1 The loan from shareholders was used to acquire two plots of land adjacent to the Company’s headquarters in Obour City, as well as purchase and pile up inventory at low price points2 Long term liability is related to packaging machinery acquired from Tetra Pak and is discounted at an annual rate of 4%

EGP 2014 2015 2016 2017 2018

Fixed Assets 99,131,395 182,527,661 190,384,367 418,181,377 453,813,777

Projects Under Construction 40,886,437 34,865,836 197,456,530 68,266,998 65,172,326

Intangible Assets - - - 1,533,896 18,164,597

Deferred Tax Assets - - 5,306,928

Total Non-Current Assets 140,017,832 217,393,497 393,147,825 487,982,271 537,150,700

Inventories 55,982,298 131,297,821 275,975,253 292,474,799 384,989,032

Accounts & Notes Receivable 6,798,751 13,067,057 10,283,482 68,209,366 24,097,642

Prepayments & Other Debit Balances 11,661,405 29,725,286 63,770,226 58,643,282 36,954,293

Cash on Hand & at Banks 93,417,825 125,600,700 121,289,503 95,763,193 128,870,897

Total Current Assets 167,860,279 299,690,864 471,318,464 515,090,640 574,911,864

Total Assets 307,878,111 517,084,361 864,466,289 1,003,072,911 1,112,062,564

Provision for Expected Claims 12,269,230 17,826,168 20,067,194 15,913,492 12,355,300

Credit Facilities 2,723,993 31,384,204 174,783,853 102,118,438 8,188,082

Accounts & Notes Payable 43,410,684 17,981,042 65,183,997 132,654,021 75,108,670

Loan From Shareholders1

- 95,000,000 - -

Long Term Liabilities - Current Portion2

15,315,071 18,451,657 32,780,966 35,810,250 28,270,460

Income Tax Payable 10,761,582 20,564,632 40,874,893 46,121,577 48,090,222

Dividends Payable 278,261 - -

Accrued Expenses & Other Credit Balances 55,583,194 11,876,752 36,241,609 29,274,138 43,835,758

Total Current Liabilities 140,342,015 213,084,455 369,932,512 361,891,916 215,848,492

Long Term Liabilities - Non-Current Portion2

11,063,560 10,474,359 113,147,603 90,396,727 56,499,433

Long Term Debt 125,816,600

Deferred Tax Liabilities 6,722,374 10,348,538 - 15,923,408 30,793,507

Notes Payable - - 581,850 1,659,545 108,238

Total Non Current Liabilities 17,785,934 20,822,897 113,729,453 107,979,680 213,217,778

Total Liabilities 158,127,949 233,907,352 483,661,965 469,871,596 429,066,270

Paid up Capital 100,000,000 200,000,000 200,000,000 200,000,000 400,000,000

Amounts Paid in Respect to Capital Increase 25,000,000 - - -

Legal Reserves 1,926,912 3,068,074 7,660,650 15,760,049 27,922,900

Retained Earnings 22,823,250 80,108,935 173,143,674 317,342,471 253,474,624

Minority Interest 98,795 1,598,770

Total Equity 149,750,162 283,177,009 380,804,324 533,201,315 682,996,294

Total Equity & Liabilities 307,878,111 517,084,361 864,466,289 1,003,072,911 1,112,062,564