Almarai

Quality You Can Trust
Almarai Company
2009 Q1 Investors Presentation London
Almarai Company
Investors Presentation 2009
Almarai Company
Overview
The company dates back to 1976 when HH Prince Sultan bin Mohammed bin Saud Al Kabeer developed a number of agricultural projects which began with the processing of fresh milk and laban and soon thereafter expanded into dairy farms, fresh processing plants and cheese processing plants. In 2005, Almarai entered into a new phase, moving from being a privately owned company to a publicly listed company. 70% of the shares are held by 3 majors shareholders and the remaining 30% are widely spread between GCC nationals. In 2007 Almarai expanded its product range and acquired 100% of Western Bakeries Co. Ltd and its subsidiary International Baking Services Co. Ltd. In January 2009 Almarai made its first acquisition outside GCC through the purchase of 75% of the Jordanian Company Teeba Investment for Developed Food Processing Company. Almarai is the largest integrated dairy company in the world, with a wellrecognised brand that was ranked number three in Forbess Top-40 Arab Brands list.
Almarai Company Investors Presentation 2009 2
Almarai Company
Key Success Factors

Over its 30-year history, Almarai has enjoyed remarkable success due to: The established, strong and well recognized brand The quality of its products and services Its dedicated work force who serve the customers and consumers Its investments in
word-class farming, and State of the art processing facilities
Its distribution network allowing its fresh products to be distributed

on a daily basis to more than 42,000 retail outlets within the 6 Gulf countries
Almarai Company
Almarai Today
Today, Almarai enjoys high revenue growth (28% CAGR over the last five years) and high margins (21% EBIT Margin in 2008) remarkable in the food industry by any standard
Almarai Company
Almarai Company
Group Products
Almarai Company
Laban (liquid yogurt)
Fresh laban (full fat, low fat, skimmed) Fresh milk (full fat, low fat, skimmed, vetal and flavored) Vetal
Western Bakeries
Filled Puffs (Cheese, Apple, Date)
Fresh Dairy
Milk
Pastry
Rolls (Cheese) Plain Croissants Filled Croissants Cup Cake (four flavours)
Zabadi Zabadi (full fat, low fat, skimmed) (natural set yogurt) Yogurt, Desserts desserts Long-Life Dairy Fruit Juice
Yoghurts, Gishta, Labneh and dairy UHT milk (plain and flavored), Evaporated Milk, whipping and sterilized cream Fresh juices Butter, Butter ghee, Triangle Cheese, Tin Cheese, Slices, Spreadable Cheese, Mozzarella, Halloumi, Feta and others Tomato Paste
Cake
Pound Cake Swiss Roll Slice Cake Sliced Bread
Bread Other Products JV Chipita (65%)
Burger Bun Cluster Roll Mamoul Sambosa Leaves, waffle Croissant Swiss Roll Layer cake
Food & Beverages
Processed Cheese & Butter Non-Dairy Foods
Dairy and Food Products

Almarai Company Investors Presentation 2009
Bakery Products
5
Almarai Company
Farming
One of the inherent strengths of Almarai is its ability to produce high quality fresh raw milk, an achievement made possible through highly developed farming skills The Companys continuous improvement efforts in the standards of health, breeding, nutrition, farm design, animal husbandry and crop management have resulted in a wealth of in-house built technology and know-how Key figures 2008: Milk produced in million liters: 674 Rolling Heard Average per cow: 12,570 p.a. Number of employee 31.12.2008: 2,138 No of cows 31.12.2008: 55,000 No of youngstock 31.12.2008: 48,000 6 Dairy Farms Al Hamra, Al Fanar, Al Nakheel, Al Rabiah, Al Badiah, Al Danah
Almarai Company
Almarai Company
Production and Transportation Facilities

Production Facilities There are two dairy manufacturing facilities, located on one site, approximately 130 kilometers from Riyadh: The first of the two state-of-the-art fully automated facilities was opened in 1996 The second facility, commissioned in 2005, has now completed its optimization program and is functioning at better than projected performance levels in utilization, quality and cost parameters There are two bakery production facilities, located in Jeddah: The first one for Western Bakeries The second one for the Modern Food Industries, the joint venture with Vivartia Transportation Facilities The long-haul fleet transports raw milk from dairy farms to the Central Processing Plants and transports finished product from the production facilities to designated sales depots. This fleet undertakes approximately 80,000 trips annually, covers 80 million kilometers and comprises more than 500 trailers as well as 54 tankers all owned and maintained by Almarai
Almarai Company Investors Presentation 2009
Almarai Company
Sales
Sales Depots We now operate from 97 Sales depots in the GCC Sales Vans & Fridges Approximately 2,000 Vans Approximately 30,000 Fridges We serve every day, more than 42,000 shops within the 6 Gulf countries
Vision, Mission and Strategy Going Forward
Almarai Company
Almarai Vision / Mission

Vision: To be the preferred choice in food products, promoting nutrition, health and well being in the Arab World Mission: Almarai to become the leading food company in the Arab world and deliver a superior Total Shareholder Return by: consistently exceeding consumer expectations providing superior value and superior quality products and services to our customers and consumers continuous development and investment in its human and technical resources
Almarai Growth Strategies

There are 3 basic growth strategies
A combination of the 3 will deliver above average returns, long term
Organic Growth
New product categories Geographies New New
New Categories
Current Current
Current
Organic Growth
Geographic Expansion
Almarai Company
11
Almarai Strategy Going Forward

Existing Business Double our business by 2013 Dominate the Gulf market in dairy, juice and food Grow the bakery business and expand coverage to all Gulf countries New categories Expand existing product range through the introduction of new food categories:
Baby food / Infant formula Acquisition of Hail Agricultural Development Company
Geographic expansion Grow outside GCC in dairy liquids, dairy food and juice through the Joint Venture
Almarai Company
12
Baby Food / Infant Formula

Targeted Infant Formula market size (GCC and exports to MENA and neighboring countries) is estimated at 40,000 tons or SAR 2.1 billion per annum This categorys growth is higher than population growth due to changes in consumer trends Currently, the entire demands for this category is fulfilled by imports from the outside the region Initial research findings support Almarais plan to enter this category due to its trusted brand, values and local roots There is worldwide shortage of Infant Formula production capacity Entering this category provides Almarai with opportunities of expansion into new categories (i.e. total the infant nutrition range) as well as expanding Almarais distribution of current and future health-line products into nontraditional channels such as hospitals and pharmacies. This category will allow Almarai to exploit the opportunity of bonding with consumers and gaining their trust from day 1 of their lives
Hail Agricultural Development Company (HADCO)

Company activities
Primary business:
Land
Farming: grain, fodder and vegetable production, animal feed, horticulture and cold storage Poultry: parent breeding, broiler production, poultry feed, processing and distribution - 5th largest producer, 4% market share (domestic production) 26 million birds 350 million sqm irrigated land south of Hail 29 million sqm irrigated land in Al Jouf 28 million sqm in Saqwa 91 million sqm Sudan
Leaseholds
Company History
HADCO is a Saudi Public Shares Company established in 1982 Paid capital of SAR 300 million divided into 30 million shares SAR 10 share value
Investors Presentation 2009 14
Almarai Company
HADCO versus Almarai

2008
SAR Millions
Almarai
HADCO Combined
Sales EBITDA Capex EBIT Net income
5,029.9 1,439.9 1,572.1 1,061.0 910.3
394.9 132.3 24.6 70.4 65.4 655.5 10.6 666.1 618.9
5,424.8 1,572.3 1,596.7 1,131.4 975.7
Sales EBITDA Capex EBIT Net income
93% 92% 98% 94% 93% 96% 100% 97% 93% 10% 20% 30% 40% Almarai 50% 60% 70% 80%
7% 8% 2% 6% 7% 4% 0% 3% 7% 90% 100%
Market capitalization 16,023.0 Net debt (Cash) Aggregate Value Total Assets 3,397.5 19,420.5 8,181.3
16,678.5 Market capitalization 3,408.1 20,086.6 8,800.2

Net debt (Cash) Aggregate Value Total Assets 0%
HADCO
Almarai Company
15
Almarai Today and Historical Review
Almarai Company
16
Almarai is realising rapid growth and high margins

Revenue and EBIT Margin1 Evolution 1999 - 2008
Comments Comments
24.9% 24.4% 22.7% 23.2% 22.6% 21.0% 20.1% 20.7% 19.4% 21.0% 5,030
CAGR 1999 2008: 19.4% CAGR 2004 2008: 27.8%
3,770
2,757 2,146 1,406 1,601 1,754 1,885
1,190
1,239
Product mix shifts Product mix shifts caused some margin caused some margin loss as non-dairy loss as non-dairy liquid products, (e.g. liquid products, (e.g. juice, cheese and juice, cheese and butter) have lower butter) have lower margins than margins than products from our products from our own milk farms own milk farms Raw materials Raw materials increased in costs increased in costs over the period over the period
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
(1) EBIT margin refers to Earnings before bank charges and Zakat Source: Almarai
Almarai Company
17
Evolution of the Cost Structure 2002-2008

Fresh dairy in % of total sales

100% 90% 80%
20.1% 19.4%
23.2%
22.6%
21.0%
20.7%
21.1%
70% 60% 50% 40% 30%

41.5% 42.3% 42.5% 44.1% 38.4% 38.3% 36.8% 34.8%
38.8%
38.8%
39.1%
20% 10% 0%
38.0%
38.5%
39.9%
2002
2003
2004
2005
2006
2007
2008
Material costs
Almarai Company
Labour and Overhead

EBIT
18
Performance - Key Highlights

Full year 2008

Net sales SAR 5,029.9 million +33.4% (2007: SAR 3,769.8 million) EBITDA SAR 1,330.9 million +32.0% (2007: SAR 1,008.4 million) EBIT SAR 1,061.0 million +35.9% (2007: SAR 780.7 million) Net profit SAR 910.3 million +36.4% (2007: SAR 667.3 million) Earnings per share SAR 8.35 versus SAR 6.12 in 2007 Net debts to Equity ratio .97 to 1 Net debt to EBITDA 2.6 x Return on Net Operating Assets (RONOA) 16.5% Return on Equity (ROE) 27.3%
YTD P3 2009
Net sales SAR 1,326.1 million +18.5% (2008: SAR 1,119.1 million) EBITDA SAR 313.2 million +26.6% (2008: SAR 247.4 million) EBIT SAR 248.2 million +27.7% (2008: SAR 194.5 million) Net profit SAR 193.4 million +21.7% (2008: SAR 162.2 million) Earnings per share SAR 1.81 versus SAR 1.49 in 2008
Almarai Company
19
Sales 2008 by Products & Regions

Sales by Products
Kuwait 7% Bahrain Qatar 2% 4% UAE 11%
Oman 5%
Export 1%
Sales by Regions
Fruit Juice 10%
Processed Cheese & Butter 20%
Long-Life Dairy 10%
Bakery 10% Other Sales 1%

Wholesale 3%
KSA 70%
Non Retailer 7%
Sales by Channel
Super Market 26%
Fresh Dairy 49%
Small Groceries 30% Mini Market 16% Large Groceries 18%
Almarai Company
20
Dairy Products
The flagship product group, dairy, includes short-life and long-life dairy products made with locally produced fresh raw milk. The range includes fresh laban, fresh milk, long life milk, natural and fruit yoghurts, cream and dairy desserts. 2008 saw the regions first diet orientated laban called Trim, a fortified product mainly targeting the health and weight conscious. Other products, such as ghiste, labneh and custard products underwent new packaging designs. We continue to be the market leader in this product group in the GCC.
SAR Millions
Sales for our dairy products, the largest product category, amounted to SAR 2,970 million, representing an increase of 29.8% on the prior year.
Dairy - Revenues
3,500 3,000 2,500 2,000 1,500 1,000 500 2004 2005 2004 2005 2006 2006 1,366 1,581
R CAG
to 2 04 20
0 08
1. 4 =2
2,970 2,288 1,900
2007 2007 2008
2008
Almarai Company
21
Fresh Juice
Following on from the revitalisation of the product range in 2007, 2008 saw the fruit juice category continue its phenomenal growth with exciting new flavours (Guava and Lemon), improved recipes and fresh packaging, giving Almarai a competitive advantage and increasing our market share across the GCC.
Sales for Fruit Juice amounted to SAR 484.5 million, representing an increase of 42.4% on the prior year.
Fruit Juice - Revenues

600
500
400 in million SAR
300
CA
8= 00 2 to 04 20 R
.9% 36
484
340
200 138 142
207
100
0 2004 2005 2004 2005 2006 2006 2007 2007 2008 2008
Almarai Company
22
Processed Cheese and Butter

Despite some price increases, as a portion of the dairy commodity cost increases were passed on to the consumer, sales of Cheese and Butter remained strong. As part of our continuous product improvement programme, a number of Almarais products have been updated with improved recipes and packaging, therefore maintaining our competitive advantage.
SAR Millions
Sales for Cheese and Butter amounted to SAR 1,028.2 million, representing an increase of 38.7% on the prior year.
Processed Cheese & Butter - Revenues

1,200
1,000
800
GR CA
405
4 200
2 to
0 08
1% 29. =
742
1028
630
600 370
400
200
0 2004 2005 2004 2006 2005 2006 2007 2007 2008 2008
Almarai Company
23
Bakery
This relatively young product group of the Almarai food basket, markets its products under the brand name LUsine. This range has shown significant growth since joining Almarai through a combination of investment in distribution, new packaging, flavours and products. During 2008, new product launches included waffles, slices, pound cakes and toffee flavoured cup cakes.
Sales of Bakery Products amounted to SAR 514.8 million, representing an increase of 39.6% on the prior year.
SAR Million
Bakery - Revenues
600 500 400 300 200 100 0 2004 2005 2004 2005 2006 2006 2007 2007 2008 2008 115
Prior to acquisition
t 04 0 R2 AG
198
08 20
.4% 45
515 369
286
Almarai Company
24
SAR Million
Q1
100
150
200
250
300
350
Almarai Company
75.1 78.0 90.6 106.1 16.7 18.5 26.9 143.7 170.5
50
20 0 Q1 4 20 0 Q1 5 20 0 Q1 6 20 0 Q1 7 20 0 Q1 8 20 09 Q2
99.9 100.3 121.8 145.1 206.1 20.2 29.1
20 0 Q2 4 20 0 Q2 5 20 0 Q2 6 20 0 Q2 7 20 08
Dairy, Juices, Foods
ALMARAI COMPANY Net Income by quarter 2004-2009
Performance 2004-2009 by Quarter
Q3
100.8 100.9 122.6 163.6 262.9 22.5 30.8
Bakery
20 0 Q3 4 20 0 Q3 5 20 0 Q3 6 20 0 Q3 7 20 08 Q4
94.5 106.9 130.2 177.7 191.4

25
20 0 Q4 4 20 0 Q4 5 20 0 Q4 6 20 0 Q4 7 20 08
15.4 27.8
100.0%
120.0%
140.0%
160.0%
180.0%
200.0%
20.0%
40.0%
60.0%
80.0%
0.0% 02.01.2008 16.01.2008 30.01.2008 13.02.2008 27.02.2008 12.03.2008 26.03.2008 09.04.2008 23.04.2008 07.05.2008 21.05.2008 04.06.2008 18.06.2008 02.07.2008 16.07.2008 30.07.2008 13.08.2008 27.08.2008 10.09.2008 24.09.2008 08.10.2008 22.10.2008 05.11.2008 19.11.2008 03.12.2008 17.12.2008 31.12.2008 14.01.2009 28.01.2009 11.02.2009 25.02.2009 11.03.2009 25.03.2009 08.04.2009 22.04.2009 06.05.2009 20.05.2009
Almarai Company
Almarai versus TASI 2008
Almarai TASI
Investors Presentation 2009 26
Market Overview
Almarai Company
27
Market Overview
GCC Dairy Market:

Milk, Laban & Zabadi
GCC dairy market is made up of five key product categories which are fresh milk, long-life milk, milk powder, fresh laban, recombined Laban and zabadi. Nearly 63% of the dairy market is in KSA which closely follows its population share in the GCC. Almarai is the market leader in GCC dairy market with 28% market share Nestle, Al Safi, Saudia and Nadec are the other major players. However the market is quite fragmented with very high number of small players indicating further potential consolidation in the industry
Dairy Market by GCC Markets

QATAR; 34; 2% BAHRAIN; 61; 3% OMAN; 123; 7% KUWAIT; 110; 6%
UAE; 331; 19%
Dairy Market by product type

MILK POWDER; 402; 22% FRESH LABAN; 392; 22%
KSA; 1114; 63%
Dairy Market by Company

OTHERS, 333, 19% NAJDYAH, 19, 1% ALMARAI, 502, 28%
RECOMBINED LABAN; 66; 4%
KDD, 22, 1% ACTIVIA, 21, 1% UNIKAI, 25, 1%
ZABADI; 191; 11%
GULF & SAFA, 29, 2% LUNA, 32, 2% AL RAWABI, 49, 3% AL AIN, 46, 3% NADA, 50, 3% ANCHOR, 58, 3% FRIESLAND, 67, 4% SAUDIA, 104, 6% AL SAFI, 153, 9% NESTLE, 179, 10%
FRESH MILK; 375; 21% LONG LIFE MILK; 347; 20%
Figures provided by The Nielsen Company MAT Nov 2008
NADEC, 83, 5%
Almarai Company
28
Market Overview
GCC Milk Market:
Powder milk, Fresh milk, Long life milk

GCC milk market is made up to three key categories: powder milk, fresh milk and long life milk Nearly 61% of the Milk market is in KSA Almarai is the market leader in GCC milk market with 21% market share Nestle is the second biggest milk producer in the region as it leads the powder milk category whereas Saudia is the third biggest milk producer on the back of its strength in the long life market
Milk Market by GCC Markets

Milk Market by product type

UAE; 237; 21% KSA; 683; 61%
MILK POWDER; 402; 36%
FRESH MILK; 375; 33%
Milk Market by Company
OTHERS, 209, 19%
ALMARAI, 239, 21%
LACNOR, 14, 1%
LONG LIFE MILK; 347; 31%
KDD, 20, 2% LUNA, 32, 3% AL RAWABI, 39, 3% AL AIN, 37, 3% NADA, 31, 3% NADEC, 30, 3% SAUDIA, 104, 9% ANCHOR, 58, 5% FRIESLAND, 67, 6% AL SAFI, 67, 6% NESTLE, 179, 16%
Almarai Company
29
Market Overview
Total GCC Fresh Milk

50 45.7 45 40 36.0 35 30 25 20 15 10 5 0 2005

Source:The Nielsen Company
45.4
42.7
12.0 11.6 9.9

5.8
10.2 10.0 9.2

5.0
10.2 9.4 9.9
10.3 9.0 9.8
4.7
5.0
2006
ALMARAI AL SAFI AL RAWABI AL AIN
2007
NADEC NADA ASAFWAH
MAT 2008
Almarai Company
30
Market Overview
Total GCC Plain UHT Milk

60 51.0 50 43.0 40.7 40 38.2
30
20 11.4 11.5 10 5.1

2.9
18.4 16.4 14.6 15.0 13.9 14.6
6.1
3.2
5.1
2.8
6.1
3.3
0 2005
2006
ALMARAI SAUDIA JAMJOOM RAINBOW AL SAFI
2007
KDD NADA LACNOR
MAT 2008
Almarai Company
31
Market Overview
Total GCC Flavored UHT Milk

25 22.4 22.0 21.3 20.4
23.6
20
20.3
15.6 15 12.4 11.4 10.5 10 8.9 7.8 10.2 10.2 7.9 6.8 5
5.1 4.9 3.9 3.8
0 2005
2006
ALMARAI AL SAFI KDD JAMJOOM RAINBOW
2007
AL RABIE NADA
MAT 2008
LACNOR
Almarai Company
32
Market Overview
GCC Laban Market:
Fresh Laban, Recombined Laban

GCC Laban market is made up to two key categories: fresh Laban and recombined laban Nearly 73% of the laban market is in KSA which indicates the local population taste profile towards laban consumptions Almarai is the market leader in GCC laban market with 42.5% market share (Almarai market share in fresh laban is 45%). Recombined laban is mainly popular in UAE and Oman where it is 61% and 68% of the total laban market respectively.
Laban Market by GCC Markets

QATAR; 6; 1% BAHRAIN; 11; 2% OM AN; 44; 10% KUWAIT; 24; 5%
UAE; 43; 9%
Laban Market by product type

KSA; 331; 73%
RECOMBINED LABAN; 66; 14%
Laban Market by Company

OTHERS, 37, 8.1% AL SERAH, 4, 1.0% AL RAWABI, 5, 1.1% MODERN DAIRY, 5, 1.2% ASAFWAH, 8, 1.7% MATROOD, 9, 1.9% AL AZIZIA, 9, 2.0% NAJDYAH, 12, 2.6% NADA, 14, 3.1% UNIKAI, 17, 3.7% ALMARAI, 195, 42.5%
ACTIVIA, 20, 4.3%
FRESH LABAN; 392; 86%
LABAN UP, 22, 4.9%
NADEC, 38, 8.2%
AL SAFI, 63, 13.7%
Almarai Company
33
Market Overview
Total GCC Fresh Laban

60
50 42.5 40 37.9
49.7 47.7
30
19.8 20 10.9 10 4.9

4.3
17.6
16.4 9.7 5.4

3.5
16.2 9.6 4.8

3.6
10.4 5.4
4.2
0 2005
2006
ALMARAI AL SAFI NADEC DANONE ACTIVIA
2007
NAJDYA NADA DAIRY
MAT 2008
MATROOD
Almarai Company
34
Market Overview
GCC Zabadi Market:

KSA accounts for only 53% of the total zabadi market followed by UAE with 27% market share Almarai is the market leader in GCC zabadi market with 36% market share followed by Alsafi at 12% and Nadec at 8% market share.
Zabadi Market by GCC Markets

Zabadi Market by product type
KSA; 100; 53%
UAE; 51; 27%
Zabadi Market by Company

OTHERS, 16, 8.4% ACTIVIA, 2, 0.9% SUNFARMS, 3, 1.3% KDD, 3, 1.5% SAFA, 3, 1.5% ASAFWAH, 4, 2.0% NADA, 5, 2.5% AL RAWABI, 5, 2.8% ALMARAI, 69, 36.2%
ZABADI; 191; 100%
NAJDYAH, 5, 2.9% M ARM UM , 6, 3.4%
STERILAC, 7, 3.7% AL AIN, 7, 3.7% UNIKAI, 8, 4.1% MILCO, 10, 5.0%
NADEC, 16, 8.2%
AL SAFI, 23, 12.0%
Almarai Company
35
Market Overview
Total GCC Zabadi

40 36.0 35 31.9 30 25 20 15 10 5 0 2007

33.6
28.6
13.2 11.7 7.6 7.9 8.2 6.8

3.6
11.8 7.7 6.5
12.1 8.2 5.0
4.0
2.8
2.5
2007
ALMARAI AL SAFI NADEC MILCO
2007
UNIKAI NADA NAJDYAH
MAT 2008
Almarai Company
36
Market Overview
GCC Juice Market:
Fresh Juice, Long life, Cans, Other

GCC Juice market is made up of various categories, however three categories dominates the markets. The biggest market share is held by Juice drinks at 44% market share followed by Fresh Juice at 36% market share. The third biggest category is Long life Juice at 15% market share KSA accounts for 64% of the total market which closely follows its populuation share in the GCC. The juice market is extremely fragmented due to lower barriers of entry. Rani, Rabie and Almarai tops the total juice market with 13%, 12% and 10% market share respectively. They are closely followed by Suntop and Nadec at 5% market share.
Juice Market by product type
Juice Market by GCC Markets

QATAR; 20; 1.6% BAHRAIN; 46; 3.7% OM AN; 82; 6.7% KUWAIT; 99; 8.0%
UAE; 201; 16.3%
KSA; 785; 63.7%
OTHERS; 6; 1% CANS; 11; 1% JUICE MILK; 39; 3% FIBRE BRICKS (LONG LIFE); 186; 15%
OTHERS, 411, 33.3% RABIE, 145, 11.8%
Juice Market by Company

RANI, 158, 12.8%
JUICE DRINKS; 547; 44% BOTTLES (FRESH); 444; 36%
ALMARAI, 125, 10.1% KARIM, 18, 1.5% LACNOR, 19, 1.5% DELTA, 23, 1.8% CAESAR, 27, 2.2% TROPICANA, 27, 2.2% KDD, 31, 2.5% AL RAWABI, 35, 2.9% DANAO, 39, 3.2% SUNTOP, 67, 5.4% NADEC, 62, 5.0% NADA, 46, 3.7%
Almarai Company
37
Market Overview
Total GCC Fresh Juice

30 26.5 25 21.7 20 16.7 15 12.6 10.6 9.5 7.8 10.5 9.8 8.7 8.1 7.7 6.8 7.1 17.3
13.0
10
4.9
4.4 3.2 2.8
0 2005
2006
ALMARAI NADEC NADA AL RAWABI
2007
TROPICANA NAJDYA MAAZA
MAT 2008
Almarai Company
38
Market Overview
GCC Processed Cheese Market:

GCC processed cheese market is dominated by jars (43%), triangles (22%) and squares 11%). In addition, tins, slices, blocks and tubs also contribute towards the category. KSA accounts for 68% of the total market in line with its population share. There are four major players in the GCC cheese market. Almarai is the category leader with 28% market share closely followed by Kraft at 25% and Fromageries Bel at 23% market share. Arla is the fourth major player at 9% market share followed by numerous other small players.
(Jars, Triangles, Squares, Tins Slices, Block, Tub)

Processed Cheese Market by GCC Markets

QATAR; 1.5; 2.0% BAHRAIN; 2.0; 2.7% OM AN; 2.8; 3.8% KUWAIT; 8.5; 11.4%
Processed Cheese Market by product type

UAE; 9.1; 12.1%
TUBS; 0.9; 1% BLOCKS; 2.2; 3% SLICES; 7.4; 10%

KSA; 50.8; 68.0%
Processed Cheese Market by Company

TINS; 7.4; 10% JARS; 32.5; 43%
OTHERS, 7, 9.8% NADEC, 1, 1.3% FONTERRA, 1, 1.9% LACTALIS, 2, 2.5% ALMARAI, 21, 27.9%
SQUARES; 8.0; 11% TRIANGLES; 16.3; 22%
ARLA FOODS, 7, 8.9%
FROMAGERIES BEL, 17, 22.9%
KRAFT, 19, 25.0%
Almarai Company
39
Market Overview
Total GCC Cheese Jars

45 40 35 30 25 20 15.5 15 10 5 2.0 0
1.0
39.4 34.3 31.9 31.4 35.5 30.4 36.2 33.6
22.6 19.3 16.1
2.3
1.9
1.6
1.7
1.6
1.3
2005
2006
ALMARAI KRAFT PUCK KIRI
2007
POWER COW NADA LUNA
MAT 2008
Almarai Company
40
Market Overview
Total GCC Cheese Triangles

40 36.4 35 30 25 20 15 10 5
2.7
34.0 32.5 32.5 28.4 27.0
22.2
21.5 17.5
14.8
14.6
15.8
2.7
2.8
2.2
3.6
2.3
3.5
2.3
0 2005
2006
ALMARAI LAVACHEQUIRIT PICON LESENFANTS
2007
MALEK AL MUROOJ
MAT 2008
NAJDYA
Almarai Company
41
Market Overview
Total GCC Square Portions

100 90.9 90 80 70 60 50 40 30 20 10 0 6.8

0.6
94.1 88.7 87.7
0.0 0.8
3.9 0.0 1.0

0.4
5.8 3.3 1.0

0.3
7.3 3.1 1.1

0.4
2005
2006
ALMARAI KIRI PUCK LAVACHE QUI RIT
2007
POWER COW COOP TEAMA
MAT 2008
Almarai Company
42
Market Overview
Total GCC Cheese Tins

80 72.9 70 60 50 40 30 20.7 20 10 1.3 0.8 0

0.3
69.5
68.0 68.1
25.5
25.7
25.6
1.8 0.8
0.5
1.7 0.6
0.7
1.7 0.9
0.9
2005
2006
ALMARAI KRAFT FALCON BEGA
2007
THE THREE COW MILKA
MAT 2008
HAPPY COW
Almarai Company
43
Market Overview
Total GCC Cheese Slices

40 35.6 35 31.3 30 26.9 25 20 15 11.1 10 5 0 2005

23.0 21.8 19.0 17.1 16.7 16.8 15.9 14.8 14.2 8.8 5.8
4.4 4.7 4.8
4.8
5.2
2006
ALMARAI CHESDALE KRAFT ANCHOR PRIDE
2007
LAVACHEQUIRIT
MAT 2008
HAPPY COW
Almarai Company
44
Market Overview
Total GCC Cheese Blocks*

45 40 35.5 35 30 25 20 15 10 6.4 5 1.5 0.0 0

0.0
38.9 33.8 28.8 30.1 29.7 36.4 33.1
8.9 6.2 6.2 3.8 0.0

0.0 0.5 1.9
2005
2006
ALMARAI KRAFT PRIDE FRICO
2007
VONK BEGA KIRI
MAT 2008
* Excludes Qatar
Materials Costs 2009
Almarai Company
46
Material costs 2009 slightly lower than 2008

50% 30%
Material Costs 2009
Feed costs higher than 2008 (see next slide) Packaging costs 2009 lower than 2008
Carton Glass Plastic higher prices higher prices lower prices
Ingredients costs slightly lower than 2008

20%
Feed
Packaging
Ingredients
Juice concentrate on par with 2008 (Orange, apple lower, mango higher) Dairy commodities slightly lower than 2008
47
Almarai Company
Material Costs 2009
Corn Future Price
Declining Wheat / Barley Price = Declining Corn Price

US$ 3.40 c/bu Sep / Oct 2007
US$ 3.93 c/bu Today 2008
US$ 2.40 c/bu Sep / Oct 2006
US$ 2.00 c/bu Sep / Oct 2005
48
Thank You!
2009 Q1 Investors Presentation
London
Almarai Company
49

Almarai

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Quality You Can Trust

2009 Q1 Investors Presentation London

Investors Presentation 2009

Key Success Factors

Its distribution network allowing its fresh products to be distributed

Investors Presentation 2009

Pound Cake Swiss Roll Slice Cake Sliced Bread

Bread Other Products JV Chipita (65%)

Food & Beverages

Processed Cheese & Butter Non-Dairy Foods

Dairy and Food Products

Investors Presentation 2009

Production and Transportation Facilities

Quality You Can Trust

Vision, Mission and Strategy Going Forward

2009 Q1 Investors Presentation London

Investors Presentation 2009

Vision, Mission and Strategy Going Forward

Almarai Vision / Mission

Vision, Mission and Strategy Going Forward

Almarai Growth Strategies

There are 3 basic growth strategies

A combination of the 3 will deliver above average returns, long term

New product categories Geographies New New

Investors Presentation 2009

Vision, Mission and Strategy Going Forward

Almarai Strategy Going Forward

Investors Presentation 2009

Vision, Mission and Strategy Going Forward

Baby Food / Infant Formula

Vision, Mission and Strategy Going Forward

Hail Agricultural Development Company (HADCO)

Vision, Mission and Strategy Going Forward

HADCO versus Almarai

Sales EBITDA Capex EBIT Net income

5,029.9 1,439.9 1,572.1 1,061.0 910.3

394.9 132.3 24.6 70.4 65.4 655.5 10.6 666.1 618.9

5,424.8 1,572.3 1,596.7 1,131.4 975.7

Sales EBITDA Capex EBIT Net income

16,678.5 Market capitalization 3,408.1 20,086.6 8,800.2

Investors Presentation 2009

Quality You Can Trust

Almarai Today and Historical Review

2009 Q1 Investors Presentation London

Investors Presentation 2009

Almarai is realising rapid growth and high margins

Almarai Today and Historical Review

Quality You Can Trust

CAGR 1999 2008: 19.4% CAGR 2004 2008: 27.8%

2,757 2,146 1,406 1,601 1,754 1,885

Investors Presentation 2009

Almarai Today and Historical Review

Evolution of the Cost Structure 2002-2008

Fresh dairy in % of total sales

70% 60% 50% 40% 30%

Labour and Overhead

Performance - Key Highlights

Full year 2008

Investors Presentation 2009

Almarai Today and Historical Review

Sales 2008 by Products & Regions

Fruit Juice 10%