C:\Fakepath\Global Alliance Ksa Beverage Bottling Investments

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Saudi Arabia Food & Beverage Investment Offering

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C:\Fakepath\Global Alliance Ksa Beverage Bottling Investments

  1. 1. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Contact: ENGINEER HUSSAIN ALBAKSAMI, CWM GLOBAL ALLIANCE W.L.L. Direct : (965) 6679-3355 Fax : (965) 2249-5885 Address: P.O. Box 4997 Safat Kuwait 13038 Ha@GlobalAllianceTrdg.com 1
  2. 2. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Table of Contents 1. Offering Summary 2. Demographics 3. Food Beverage Statistics 4. Sponsor & Project Data 5. KSA Tadwaul Food Sector Data 2
  3. 3. Sample XYZ Beverage Company Details Company: XYZ Beverage Company, ( Joint Stock Company)(C.J.S.C.) (‘Company’) Sector Food & Beverage: Company owns and operates new Beverage bottling and canning plant located in Central Saudi Arabia. Operations: Plant will produce bottled water in 330 ml, 500 ml, 1500 ml PET bottles , as well as 5 Gallon Poly Carbon still water products. In addition , Company will produce flavored water, and carbonated soft drinks under co-pack agreements and its own new brand launch. Company has significant growth potential in the GCC and regional markets. Promoters: TBD Founders & Management: XYZ Beverage Corporation (Group has Various Food Processing Factories) Number of shares on offer: 200,000,000 Shares* amounting to SR 200,000,000. Share price: 1.00 Saudi Riyal Minimum/Maximum The minimum subscription per application is SR 5,000,000 or (5,000,000) subscription: shares. Subscriptions will only be accepted for additional amounts in multiples of SR (5,000,000) . There is no maximum investment per investor. Offer period: Opening date: June 15th, 201X Closing date: Closing date: June 30th, 201X Lock-up period: As per Country Company Laws, shares of a newly established company may have a lock-in period of certain period starting from the date of incorporation. As XYZ was established in 2003, its shares may be tradable. Refer to Country Corporation Law & your attorney for further clarification. Dividend Distribution: Shares offered through this offer will be eligible for dividends, subject to availability of adequate distributable profits, declared in respect of the financial year ending [201X] and thereafter. Voting rights: All issued shares will have voting rights. Shares will be treated pari-passu with other existing Shares as issued by the Company. 3
  4. 4. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Table of Contents 1. Offering Summary 2. Demographics 3. Food Beverage Statistics 4. Sponsor & Project Data 5. KSA Tadwaul Food Sector Data 4
  5. 5. Saudi Arabia Population Demographics (July 08): 28,161,417 Total Land (including Area: 2.25 Median age: Total Male 21.5 Yrs 22.9 Yrs 18% or Mill. Sq KM Female 19.7 Yrs 5,576,076 non naturals. Birth Rate: 28.83 births / 1000 population Fertility Rate: Rapidly 3.89 children / woman increasing. Current By 2025, population Ethnic group: Population growth Arabs : 90%, Afro Asians 10% expected to rate: Literacy rate: be 105 1.945% 78.8% (can read / write) million. City / Oasis density: 1000 people / sq km 5
  6. 6. Saudi Arabia Demographics 2007 Population (Million) 24.3 Population Growth Rate (% Growth) 2.6% Personal Disposable Income (Per head) US $4,313 Average Number per Household 5.5 6
  7. 7. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Table of Contents 1. Offering Summary 2. Demographics 3. Food Beverage Statistics 4. Sponsor & Project Data 5. KSA Tadwaul Food Sector Data 7
  8. 8. Forecasted KSA Export Vs. Import Volume 2006-2013 (Food, Beverage & Tobacco) 20 15 USD Billions 10 5 Imports Exports 0 2006 2007 2008 2009 2010 2011 2012 -5 2013 Source: Ministry of Economy and Planning, Central Department of Statistics, Saudi Arabian Monetary Agency, BMI 8
  9. 9. Projected KSA Food Consumption 2006 2007 2008 2009 2010 2011 2012 2013 Food consumption 15.3 15.7 16.3 17.6 18.9 19.9 20.7 21.7 (US$ bn) Per capita food consumption 647.4 649.5 655.9 691.9 729.1 750.5 765.8 784.0 (US$) Food consumption as 4.3% 4.1% 3.2% 4.1% 4.0% 4.1% 4.1% 4.1% % GDP 9
  10. 10. GCC Beverage Consumption Statistics Beverages Products Beverage Type Volume Expected Growth (CAGR) (Million Liter) Per Category Per Category Energy Drinks 8.3% Packed Water 5,321 RTD Tea products 7.2% Hot Tea 3,207 Malt Beverages 6.9% drinks 2,506 Bottled Water 6.7% Liquid milk 1,865 Liquid Milk 6.2% Juice Products 1,367 Juice Products 5.5% Hot Coffee 1,183 Carbonated Soft drink 5.2% Laban 538 Laban 4.1% All other beverages 620 Dilute Drinks 3.0% Total Beverage Consumed is Tea 1.7% (15.5 Billion Liters in 2007) 10
  11. 11. There are more than a dozen Saudi Arabia Top of key beverage players in the market, of which only few Like Beverage Manufacturers Almarai, Al Rabie, NADEC, NADA, Aujan and Abuljadayel act as Trend setters. A list of The companies who not only Operate in Saudi but also export to neighboring countries is as Below.  Almarai Dairy Company Syria  Al Rabie Saudi Foods Co.  Abuljadayel Beverages Iran  National Factory for Foodstuff Production  NADEC  Al Othman (NADA) Egypt KSA  Pepsico  Arrow Juice Company  Aujan Soft Drinks  Karim Food Industries  Gulf Union Foods Co.  Najdiyah Marketing  Al Safi Dairy Company  Al Rai Food Industries 11
  12. 12. UAE, Bahrain, and Saudi Arabia are amongst the leading 15 nations in the world for bottled water consumption 12
  13. 13. KSA Packaged Water Retail Value Grew at a 3.5% CAGR from 2001 to 2005 to reach USD 442 million KSA Retail Market of Packaged water GCC 480 CAGR = 3.5% Consumption % 460 19.02 440 18.75 • Saudi Arabia 65% 420 18.54 400 18.4 18.29 441.9 • UAE 380 425.1 18% 410.1 385.8 397.3 360 • Kuwait 340 7% 2001 2002 2003 2004 2005 • Oman Value USD M Value/Capita $ 6% Source: IMES consulting, ME Bev. Study ‘06 • Packaged water imports into KSA are restricted to very up market still • Bahrain water brands (almost exclusively French brands@ % of Market!). 6% • GCC produced Water brands have tough competition in KSA due to very low price point!. • Saudi Arabia is ranked as one of the top 15 consumers of packaged • Qatar water in the world. 6% 13
  14. 14. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Table of Contents 1. Offering Summary 2. Demographics 3. Food Beverage Statistics 4. Sponsor & Project Data 5. KSA Tadwaul Food Sector Data 14
  15. 15. SWOT ANALYSIS • Very Established & Experienced Management • The ban on alcoholic drinks leave plenty of with existing loyal customer and distribution opportunities for producers of non-alcoholic base. beers and malt based drinks. • The country benefits from a strong and dynamic • Soft drinks forecasted to experience strong soft drinks industry, which is boosted by the ban growth in coming years in value and volume. on alcoholic drinks and the hot climate. • Alternative teas, such as herbal and fruit tea, • There is strong interest in the high-value have proved to be very popular, indicating strong premium functional drinks category. growth opportunities through product innovation • Haj and umrah drive soft drinks sales growth. by skilled & highly dedicated Management. • Bottled water is very popular due in part to the • National Pride sentiment is creating opportunity country's severe heat. for locally innovated new flavors and brands in • Sponsor to leverage brand to gain market share. Islamic countries. (New flavor is in the making) • Market has local and foreign competition with | • Popular boycotts can be very damaging, as a existing brands in place. country's politics can severely influence • Boycotts of Western products are very popular, consumption in the Middle East. with Coca-Cola and Pepsi having been targeted • Perceptions of high security risk deter some in the past. investors and add to the costs of insurance. • There are still significant pockets of poverty in • Future rising commodity costs usually a negative the country, despite its vast oil wealth. impact on drink producer's profit margins. • The bottled water & soft drinks sub-sectors are • Rising packaging costs will increase producers' already fairly mature. overheads 15
  16. 16. Forecasted Projected Income & Expense Charts Net Profit Vs. Revenue (forecasted) 16
  17. 17. XYZ PRODUCTION RATES PER PRODUCT Bottles Cost Per Per Hours/da Hours/day Hours/day Hours/day Hours/day Product Type Size Box Box y 2009 2010 2011 2012 2013 Bottled Water 0.33 Liters PET 40 12.76 SR 6.54 6.54 6.54 6.54 6.54 0.65 Liters PET 24 8.2 SR 1.96 1.96 1.96 1.96 1.96 1.50 Liters PET 12 7.59 SR 4.58 4.58 4.58 4.58 4.58 Aerated Beverage 0.300 Liters PET 40 25 SR 0.00 1.18 1.37 1.57 1.96 TOTAL PET LINE HOURS/DAY 13.08 14.25 14.45 14.65 15.04 Poly Carbon 5 Gallon Container 1 5 R 4.38 4.38 4.38 4.38 4.38 Aerated Can 0.150 Liters Can 24 18 SR 1.18 1.57 1.96 2.35 2.75 0.300 Liters Can 24 25 SR 2.75 3.14 3.53 3.92 4.32 TOTAL CAN LINE HOURS/DAY 3.92 4.71 5.49 6.28 7.06 ASSUMPTIONS Working Days/year 312 days Bottles Per hour 22000 bottles Cans per hour 75000 cans 5-Gallon per hour 1500 Jugs 17
  18. 18. DRAFT SAMPLE OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Table of Contents 1. Offering Summary 2. Demographics 3. Food Beverage Statistics 4. Sponsor & Project Data 5. KSA Tadwaul Food Sector Data 18
  19. 19. Valuation of KSA Listed Food Sector Companies YTD (Jan. 12th 2009) Market Price Div. Company LTP Change Valuation P/E Cap Yield 2007 End %YTD SR Million SR Million % last 09 ROE ROA P/E-TTM P/E-08E PBV# Almarai 149.3 16,268 -0.5 6.6 27 13.2 18.4 - 4.4 1.5 Savola Group 24.9 12,425 -0.4 2.7 8.1 4.7 14.7 15.5 1.8 4.8 NADEC 34 2,040 -0.9 7.6 10.9 6.8 15.6 - 1.8 - Saudi Fisheries 36.9 738 -2.6 48.8 -14.3 -12.1 nm -4.3 - - SADAFCO 22.4 726 -1.1 28.4 11.4 7.7 10.9 - 1.5 4.5 Halwani Bros. 24.9 710 0.2 20.6 12.8 7.7 12.9 -1.5 - - Hail Agriculture 23.5 705 4.9 11.4 12.9 9.4 7.9 - 1.5 2.1 Jazan Development 9.4 468 0.5 1.1 2 1.9 23.6 - 0.7 5.3 Jouff Agriculture 22.3 446 0.5 7 12.2 9.9 7.4 - 1 2.2 Tabuk Agriculture 21.1 422 1.9 16.6 5.2 4.5 19.5 -1.1 2.4 - Anaam Holding 38.1 415 - 8.9 5.6 2.5 19.8 - 3.4 - Qassim Agriculture 8.2 409 1.2 7.9 -0.7 -0.6 17,049.20 - 1 - Bishah Agriculture 69.8 349 - - - - nm - - - Food 15.2 304 5.6 36.3 5.6 4.8 21.2 -1.8 - - Eastern Agriculture 22.3 167 4 25 2.2 1.8 274 -1.5 - 19
  20. 20. DRAFT OFFERING PRESENTATION XYZ BEVERAGE FACTORY (C.J.S.C) SAUDI ARABIA Contact: Steps To Take: Engineer Hussain Albaksami, CEO 1. Email to receive NDA. 2. Sign NDA & Disclosure Direct : (965) 6679-3355 Fax : (965) 2249-5885 Form and fax back. 3. XYZ will Forward Address: P.O. Box 4997 Investment Memorandum Safat Kuwait 13038 Ha@GlobalAllianceTrdg.com 20

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