RESULT OVERVIEW Q1 2016 Table of Content Q1 Highlights 3 Q1 - - PowerPoint PPT Presentation

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RESULT OVERVIEW Q1 2016 Table of Content Q1 Highlights 3 Q1 - - PowerPoint PPT Presentation

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RESULT OVERVIEW Q1 2016 Table of Content Q1 Highlights 3 Q1 Business overview 5 Q1 financials 13 2 Q1 HIGHLIGHTS 3 Q1 HIGHLIGHTS Hajj and Umrah business: Memorandum of understanding signed with Mecca governorate to conduct

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SLIDE 1

RESULT OVERVIEW Q1 2016

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SLIDE 2

2

Q1 Highlights 3 Q1 Business overview 5 Q1 financials 13

Table of Content

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SLIDE 3

3

Q1 HIGHLIGHTS

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SLIDE 4

4

Q1 HIGHLIGHTS

SACC Investor presentation Q1 2016

  • Hajj and Umrah business: Memorandum
  • f

understanding signed with Mecca governorate to conduct a study to develop a new operating model to provide food services to pilgrims

  • New

board term started

  • n

the 26th January 2016. Dr. Yahya Al Yahya was nominated as the chairman of the board

  • 4 new Business and Industries catering

contracts signed

  • Number of lounge guests reached 510,000
  • Dependency on Saudia reduced further

17/5/2016

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SLIDE 5

BOARD OF DIRECTORS 31.03.2016

5 SACC Investor presentation Q1 2016

  • Dr. Yahya A. Alyahya

Chairman (Non-executive) Sami A. Al Hokair Non-executive Board Member Shawgi M. Mushtag Non-executive Board Member Jonathan Stent-Torriani Non-executive Board Member Raid Bin Ibrahim Sulaiman Al-Mudaihem Non-executive Board Member Fahd A. Al Rasheed Non-executive & Independent Board Member Abdullah Jameel Taibah Non-executive & Independent Board Member Ayman T. Al-Tayyar Non-executive Board Member Abdulmohsen Al-Yahya Non-executive Board Member

17/5/2016

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SLIDE 6

6

Q1 Business Overview

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SLIDE 7

7

PRODUCTS & SERVICES

SACC Investor presentation Q1 2016 17/5/2016

SACC

In Flight Catering SkySales Retail

Airport Lounge

Business &Industry Services

Remote Camp Train

Menu Planning Equip. Logistics

CPU

Laundry Service Hajj & Umrah Catering

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SLIDE 8

8

FLIGHTS AND MEALS

1000 units 2013-Q1 2014-Q1 2015-Q1 2016-Q1 Number of flights Saudia 29 31 32 34 Others 8 11 15*) 11 Private 5 6 7 7 Total 42 48 54 52 Number of meals Saudia 6,279 7,231 7,264 7,244 Others 915 992 1,120 1,189 Private 203 244 235 211 Total 7,397 8,467 8,619 8,644

SACC Investor presentation Q1 2016 17/5/2016

*) figure corrected from 11 to 15

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SLIDE 9

9

LOUNGE GUESTS

SACC Investor presentation Q1 2016

2014-Q1 2015-Q1 2016-Q1 1,000 pax Jeddah 181 196 202 Riyadh 188 225 251 Dammam 25 45 56 Medina 2 Total 395 466 510

17/5/2016

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SLIDE 10

10

DEPENDANCY FROM SAUDIA*) DECREASES

SACC Investor presentation Q1 2016

2012-Q1 2013-Q1 2014-Q1 2015-Q1 2016-Q1 SV share

  • f net

sales 71% 69% 68% 64% 63%

  • Besides in-flight catering services, SACC provides Saudia airline

equipment, lounge services and manages SkySales on-board sales

  • SACC’s dependency from SV have decreased significantly due to

successful strategy implementation

  • Trend is expected to continue also during 2016

17/5/2016

*) Includes Saudi Arabian Airlines (catering, menu planning and equipment sales), Al Fursan lounges, Saudia

Cargo and Saudia Private Aviation

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SLIDE 11

SACC STAFF COUNT

11

2011-Q1 2012-Q1 2013-Q1 2014-Q1 2015-Q1 Q1 - 2016 Saudi males 820 881 871 753 771 1,002 Saudi females 21 149 171 155 89 103 Total Saudis 841 1,030 1,042 908 860 1,105 Expatriates 1,978 2,094 2,392 2,620 3,031 2,939 Total permanent staff 2,819 3,124 3,434 3,528 3,891 4,044

  • Saudization rate at the end of Q1 was 22.5%, which places SACC in medium

green level in a relevant category

  • In addition to permanent staff SACC employed 1,402 temporary staff at the end
  • f Q1 2016
  • The total number of permanent and temporary staff at the end of the year was

5,446

SACC Investor presentation Q1 2016 17/5/2016

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SLIDE 12

STATISTICS

12

Particulars 2016 Q1 2015 Q1 Total number of inflight meals catered 8.6 million 8.6 million Total number of flights catered 51,655 flights 53,543 flights Total number of Airline clients SAUDIA + 71 other airlines SAUDIA + 67 other airlines Total number of Business Lounges 22 (12 Intl, 7 Dom, & 3 Others) 14 (8 Intl, 5 Dom, & 1 Other) Total number of Lounges guests 510,000 466,000 Total number of Non-Airline clients 50 (34 Food & 16 Laundry) 52 (38 Food & 14 Laundry)

SACC Investor presentation Q1 2016 17/5/2016

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13

Q1 Financials

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14

Q1 FINANCIAL SUMMARY

SACC Investor presentation Q1 2016

  • Net sales decreased by 0.2% from 560 MSR to

559 MSR

  • Net profit decreased by 15% from 167 MSR to

142 MSR mainly due to provisions released in 2015

  • Earnings per share before zakat and income

tax are 1.73 SAR (2.04 SAR Q1 2015)

  • Cash and cash equivalent have increased

from 304 MSR to 308 MSR

  • SACC is currently investing into fixed assets

(KAEC Laundry project & Madinah new catering unit)

  • Company remained debt free after financing

its operating expenses and CAPEX from cash flow and cash balance

17/5/2016

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SLIDE 15

15 SACC Investor presentation Q1 2016

  • Saudia remained the most important source
  • f income for SACC
  • Saudia’s

share

  • f

total SACC turnover decreased from 64% in Q1 2015 to 63% in Q1 2016

  • 2016 topline was maintained on a same level

as last year

  • Business Lounges +26%
  • Inflight catering -3%
  • Laundry +66%
  • Business & Industrial -11%
  • SkySales +20%
  • 2016

result was adversely impacted by release of 18 MSAR provisions & accruals (11 MSAR for AR and 7 MSAR bonus) in 2015

  • COGS ratio improved by 1pp from 42% to

41%

17/5/2016

Q1 FINANCIAL SUMMARY

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16 SACC Investor presentation Q1 2016

  • Personnel cost ratio is maintained at the

same level of 2015 at 10%

  • Other expenses maintained at the same level
  • f 2015 at 8%
  • G&A increased

by 19.1 MSAR

  • r

3.4pp mainly due to net increase in provision for doubtful receivables. This is mainly related to releases in Q1 2015

  • Net

profit declined from 2015 by 15% resulting in 141.7 MSAR or 25.3% profit ratio

17/5/2016

Q1 FINANCIAL SUMMARY

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17

2016 KEY FINANCIALS COMPARED TO SAME QUARTER, PREVIOUS YEARS

2015 2014 162 2013 167 2016 87 2012 106 141 2011 142

  • 15,4%

2012 2013 2014 27.6 31.2 32.6 2016 25.3 2015 29.9 2011 30.0 1.73 2.04 1.97 1.72 1.29 1.75 1.75 1.50 1.50 2012 2015 2014 2013 2016

Dividends per share Earnings per share before Z&IT

2016 2013 1.306 2012 1.171 1.190

  • 5,4%

2015 1.381 2014 961 903 2011 291 452

  • 0,2%

2016 2015 560 559 2014 2011 2013 497 2012 384  Net sales decreased by 0.2% from 560 MSR to 559 MSR  Net profit decreased by 15.4% from 167 MSR to 142 MSR  Earnings per share before zakat and income tax were 1.73 SAR (2.04 SAR)

Shareholders equity Net profit % Net profit SACC Investor presentation Q1 2016 Revenues 17/5/2016

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18

2016 Q1 KEY FINANCIALS COMPARED TO PREVIOUS QUARTER, PREVIOUS YEARS

2012 104 2011 127 109 2013 2014 142 173

  • 25,7%

191 2016 2015 26.3 2011 32.3 2013 23.2 26.5 2012 2015 25.3 2016 34.3 2014 1.73 2.33 2.11 1.55 1.27 1.75 1.75 1.75 1.75 1.00 2013 2012 2015 2014 2016

Earnings per share before Z&IT Dividends per share

981 1.226 1.062 2011 1.318

  • 0,9%

2015 1.306 2014 2016 2013 1.159 2012 415 2013 2014 535 556 480 2016 2015 +0,5% 559 2012 447 2011  Net sales increased by 0.5% from 556 MSR to 559 MSR  Net profit decreased by 25.7% from 191 MSR to 142 MSR  Cash and cash equivalents have increased from 304 MSR to 308 MSR

Shareholders equity Net profit % Net profit SACC Investor presentation Q1 2016 Revenues 17/5/2016

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SLIDE 19

REVENUES

Source: Financial Statements

400 300 450 350 600 550 250 500 7% 9% 1% 2015-Q1 560 73% 10% 5% 10% 2% 2014-Q1 496 76% 10% 4% 7% 3% 2013-Q1 452 76% 10% 4% 7% 2% 2012-Q1

  • 24%
  • 9%

20% 26%

  • 3%

2016 vs. 2015

  • 0.21%
  • 1.18

2016-Q1 12% 77% 11% 384 7% 2% 2011-Q1 291 79% 11% 3% 6% 2% 559 71% 3%

SAR (millions)

19 Non-Airline Other Revenues Lounges Skysales Inflight Catering SACC Investor presentation Q1 2016 17/5/2016

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SLIDE 20

NET INCOME

  • Net income before tax and zakat decreased by SAR 25m or 15.4%

Source: Financial Statements

SAR (millions)

142 167 154 141 106 87 20 40 60 80 120 140 100 160 180 2016-Q1

  • 15,4%

2015-Q1 2014-Q1 2013-Q1 2012-Q1 2011-Q1 30.0%*) 27.6% 31.2% 29.9% 32.6%

20 SACC Investor presentation Q1 2016

25.3%

17/5/2016

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SLIDE 21

CASH FLOW

SAR (millions) 21 1.0 7.0 8.0

Change in WoC Depr. EOSA paid Provisions and accruals, net Operating cashflow +68M SAR CAPEX

  • 3.0

308.0 372.0 4.0

  • 89.0
  • 56.0

304.0

Net income Cash balance 31.03.2016 Dividends paid

142.0

Cash balance 31.12.2015 Long term investments

  • Operating cash flow was +68 MSAR
  • WOC increased by 89M
  • CAPEX was lower than budgeted and represented the largest single outflow

SACC Investor presentation Q1 2016 17/5/2016

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22

6,756.99 6,911.76 54.00 123.05 50.00 100.00 150.00 200.00 IPO 9th Jul-12 Jul-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 5,000 10,000 15,000 20,000 Tadawul Index SACC closing share price

SHARE PRICE DEVELOPMENT

SACC Investor presentation Q1 2016 17/5/2016

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23

SHAREHOLDERS as of 31/03/2016*)

Strategic Catering Co: Al-Hokair Group, Injaz Holdings, and Newrest Group

*) As of 17/05/2016 SCCL has reduced its ownership to 23.38%. Source: Tadawul

SACC Investor presentation Q1 2016

35.70% 24.84% 39.46% Saudi Arabian Airlines Company Strategic Catering Co. Ltd. The Public

17/5/2016

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24

SIGNIFICANT EVENTS AFTER PERIOD CLOSING

SACC Investor presentation Q1 2016

1. 14th April SACC announced a contract for inflight services and inflight SkySales with Al Bayraq

  • Al Bayraq is an associated company,

run by Saudia Private Aviation

  • Al Bayraq operates full business class

flights between Jeddah and Riyadh

  • Contract term is three years effective 1st
  • f May 2016
  • The forecasted sales value for the three

years is 81M SAR 2. 4th April SACC announced a contract to run Saudia hotel in Jeddah

  • Contract is with SARED, an associated

company, owned by Saudia

  • Contract period is seven years effective

1st April 2016

  • SACC shall renovate, prepare, furnish,

and run the Saudia Hotel and its entertainment center, which is comprised of 8 buildings, each of which contain 12 suites giving a total of 96 suites

17/5/2016

3. 17th April Saudia announced an establishment of a new low cost carrier, Flyadeal. The company will start its operations mid 2017

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SIGNIFICANT EVENTS AFTER PERIOD CLOSING

SACC Investor presentation Q1 2016

4. 5th of May SACC announced entering into a contractual relation with Saudi Airlines Cargo Company

  • SACC will provide security services for

Cargo facilities in King Khaled Bin Abdulaziz International airport in Riyadh

  • Contract term is two (2) years effective

from 1st June 2016 and ending on 31st May 2018

  • The forecasted sales value for the three

years is 12M SAR 5. 9th May SACC announced a contract renewal with Oman Air with the full catering on flights outside Saudi Arabia

  • Contract term is three (3) years

effective from 15th June 2016 and ending on 14th Jun 2019

  • The forecasted sales value for the three

years is 35M SAR

17/5/2016

6. 10th May SACC announced Q1 dividend, 1.75 SAR per share

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SLIDE 26

Thank you