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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
DRAFT SAMPLEOFFERING PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
1
Table of Contents
1. Offering Summary
2. Demographics
3. Food Beverage Statistics
4. Sponsor & Project Data
5. KSA Tadwaul Food Sector Data
DRAFT SAMPLEOFFERING
PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
2
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
subscription:
The minimum subscription per application is SR 5,000,000 or (5,000,000)
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:
Closing date:
Opening date: June 15th, 201X
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.
Sample XYZ Beverage Company Details
3
Table of Contents
1. Offering Summary
2. Demographics
3. Food Beverage Statistics
4. Sponsor & Project Data
5. KSA Tadwaul Food Sector Data
DRAFT SAMPLEOFFERING
PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
4
Median age: Total 21.5 YrsMale 22.9 YrsFemale 19.7 Yrs
Birth Rate: 28.83 births / 1000 population
Fertility Rate: 3.89 children / woman
Ethnic group:Arabs : 90%, Afro Asians 10%
Literacy rate:78.8% (can read / write)
City / Oasis density: 1000 people / sq km
Total Land Area: 2.25 Mill. Sq KM
Population
(July 08): 28,161,417 (including
18% or 5,576,076
non naturals.
Rapidly increasing. By 2025,
Population expected to
be 105 million.
Current population
growth rate:
1.945%
Saudi Arabia Demographics
5
Population (Million) 24.3 Population Growth Rate (% Growth) 2.6%Personal Disposable Income (Per head) US $4,313Average Number per Household 5.5
Saudi Arabia Demographics 2007
6
Table of Contents
1. Offering Summary
2. Demographics
3. Food Beverage Statistics
4. Sponsor & Project Data
5. KSA Tadwaul Food Sector Data
DRAFT SAMPLEOFFERING
PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
7
2006 2007 2008 2009 2010 2011 2012 2013-5
0
5
10
15
20
US
D B
illio
ns
Imports
Exports
Source: Ministry of Economy and Planning, Central Department of Statistics, Saudi Arabian Monetary Agency, BMI
Forecasted KSA Export Vs. Import Volume 2006-2013(Food, Beverage & Tobacco)
8
Projected KSA Food Consumption
2006 2007 2008 2009 2010 2011 2012 2013
Food
consumption
(US$ bn)
15.3 15.7 16.3 17.6 18.9 19.9 20.7 21.7
Per capita food
consumption
(US$)
647.4 649.5 655.9 691.9 729.1 750.5 765.8 784.0
Food
consumption as
% GDP
4.3% 4.1% 3.2% 4.1% 4.0% 4.1% 4.1% 4.1%
9
GCC Beverage Consumption Statistics
Total Beverage Consumed is (15.5 Billion Liters in 2007)
Beverages Products Expected Growth (CAGR)
Per Category
Beverage Type Volume (Million Liter) Per Category
Energy Drinks 8.3%
RTD Tea products 7.2%
Malt Beverages 6.9%
Bottled Water 6.7%
Liquid Milk 6.2%
Juice Products 5.5%
Carbonated Soft drink 5.2%
Laban 4.1%
Dilute Drinks 3.0%
Tea 1.7%
Packed Water 5,321
Hot Tea 3,207
drinks 2,506
Liquid milk 1,865
Juice Products 1,367
Hot Coffee 1,183
Laban 538
All other beverages 620
10
There are more than a dozenof key beverage players in the market, of which only few LikeAlmarai, Al Rabie, NADEC,NADA, Aujan and Abuljadayelact as Trend setters. A list ofThe companies who not onlyOperate in Saudi but alsoexport to neighboring countriesis as Below.
Almarai Dairy Company Al Rabie Saudi Foods Co. Abuljadayel Beverages National Factory for
Foodstuff Production NADEC Al Othman (NADA) Pepsico Arrow Juice Company Aujan Soft Drinks Karim Food Industries Gulf Union Foods Co. Najdiyah Marketing Al Safi Dairy Company Al Rai Food Industries
Saudi Arabia Top Beverage Manufacturers
Syria
Iran
Egypt KSA
11
UAE, Bahrain, and Saudi Arabia are amongst the leading 15 nations in the world for bottled water consumption
12
385.8 397.3410.1
425.1441.918.29
18.418.54
18.7519.02
340
360
380
400
420
440
460
480
2001 2002 2003 2004 2005
Value USD M Value/Capita $
KSA Retail Market of Packaged water CAGR = 3.5%
• Packaged water imports into KSA are restricted to very up market still water brands (almost exclusively French brands@ % of Market!).
• 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 water in the world.
Source: IMES consulting, ME Bev. Study ‘06
KSA Packaged Water Retail Value Grew at a 3.5% CAGR from 2001 to 2005 to reach USD 442 million
65%• Saudi Arabia
18%• UAE
7%• Kuwait
6%• Oman
6%• Bahrain
6%• Qatar
GCC Consumption %
13
Table of Contents
1. Offering Summary
2. Demographics
3. Food Beverage Statistics
4. Sponsor & Project Data
5. KSA Tadwaul Food Sector Data
DRAFT SAMPLEOFFERING
PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
14
• Very Established & Experienced Management with existing loyal customer and distribution base.
• The country benefits from a strong and dynamic soft drinks industry, which is boosted by the ban on alcoholic drinks and the hot climate.
• There is strong interest in the high-value premium functional drinks category.
• Haj and umrah drive soft drinks sales growth.• Bottled water is very popular due in part to the country's severe heat.
• Sponsor to leverage brand to gain market share.
• The ban on alcoholic drinks leave plenty of opportunities for producers of non-alcoholic beers and malt based drinks.
• Soft drinks forecasted to experience strong growth in coming years in value and volume.
• Alternative teas, such as herbal and fruit tea, have proved to be very popular, indicating strong growth opportunities through product innovationby skilled & highly dedicated Management.
• National Pride sentiment is creating opportunity for locally innovated new flavors and brands in Islamic countries. (New flavor is in the making)
• Popular boycotts can be very damaging, as a country's politics can severely influence consumption in the Middle East.
• Perceptions of high security risk deter some investors and add to the costs of insurance.
• Future rising commodity costs usually a negative impact on drink producer's profit margins.
• Rising packaging costs will increase producers' overheads
• Market has local and foreign competition with | existing brands in place.
• Boycotts of Western products are very popular, with Coca-Cola and Pepsi having been targeted in the past.
• There are still significant pockets of poverty in the country, despite its vast oil wealth.
• The bottled water & soft drinks sub-sectors are already fairly mature.
SWOT ANALYSIS
15
Net Profit Vs. Revenue (forecasted)
Forecasted Projected Income & Expense Charts
16
XYZ PRODUCTION RATES PER PRODUCT
Product Type Size
Bottles
Per
Box
Cost
Per
Box
Hours/da
y 2009
Hours/day
2010
Hours/day
2011
Hours/day
2012
Hours/day
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
Table of Contents
1. Offering Summary
2. Demographics
3. Food Beverage Statistics
4. Sponsor & Project Data
5. KSA Tadwaul Food Sector Data
DRAFT SAMPLEOFFERING
PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
18
Valuation of KSA Listed Food Sector Companies YTD (Jan. 12th 2009)
SR Million SR Million % last
%YTD
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 -
Company MarketCap
Price Change
2007 End
Div. Yield
Valuation P/ELTP
19
DRAFT OFFERING PRESENTATION
XYZ BEVERAGE FACTORY (C.J.S.C)
SAUDI ARABIA
Contact: Engineer Hussain Albaksami,
CEO
Direct : (965) 6679-3355Fax : (965) 2249-5885
Address: P.O. Box 4997 Safat Kuwait 13038
Ha@GlobalAllianceTrdg.com
Steps To Take:
1. Email to receive NDA.2. Sign NDA & Disclosure
Form and fax back.3. XYZ will Forward
Investment Memorandum
20
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