SMEG Distribution

1. January 2019
We Manage your brands

2. Weareaglobalagrifoods,farming,
distributionandresourcesgroup
engagedinproduction,procurement,
processing,merchanting,distributionand
wholesalethroughourbalanced
integratedsupplychain
Ourkeystrengthsareourhumancapital,
extensivegeographical&product
diversification,merchanting&logistics
expertise,deeplocalconnectivity,balanced
assetintegration,supportedbystrong
financial&riskmanagementinfrastructure
Wetakeprideincreating
sustainablegrowth,inwaysthat
addvaluetoouremployees,
farmersandthecommunities
throughoutoursupplychain
Phoenix, the Parent Company, is a global agrifood, farming, distribution
and resources group..
2
ORIGINATIONCOUNTRIES
30
DESTINATIONSCOUNTRIES
64
SUPPLYCHAINASSETS
45
PRODUCTS
60
FARMINGLANDACROSSTHEWORLD
100,000 Ha
HUMANRESOURCESWORLDWIDE
2500
REVENUES
USD 2B

3. Our offices are located at origins as well as destinations acting as sourcing and distribution centers
…With Supply and Distribution Operations Worldwide…
AFRICA
• Abidjan, Ivory Coast
• Accra, Ghana
• Lomé, Togo,
• Lagos, Nigeria,
• Doula, Cameroon
• Maputo, Mozambique
• Mombasa, Kenya
• Pietermaritzburg,
South Africa
AMERICAS
• Chicago, USA
• São Paulo, Brazil
CIS COUNTRIES
• Odessa, Ukraine
• Chisinau, Moldova
• Rostov, Russia
• Astana, Kazakhstan
ASIA
• Singapore
• Bangkok, Thailand
• Dubai, UAE
• Mumbai & Gurgaon, India
• Ho Chi Minh City, Vietnam
AUSTRALIA
• Brisbane, Australia
TECHNOLOGY CENTERS
• Hyderabad, India – KPO
• Mumbai, India - ODC
Upstream Supply Chain Downstream
3

4. …And Presence at all steps of the Business Value Chain
• Kazakhstan –
Wheat, Linseed,
Feed Barley and
Green Lentils
• Ukraine – Wheat,
canola, yellow
peas, sunflower
seeds
• Benin – Tomato,
Onion, Cashew
• India - Basmati
Rice
• Vietnam -
Parboiled Rice
• Kazakhstan - Feed
Wheat
• Ukraine - Walnut
Cleaning Facility
• Ukraine - Pulses
Splitting Facility
• UAE - Pulses,
Spices & Sugar
Packing Facility
• Mozambique -
Sugar Packing
Facility
From Farm to
Retail
• Rice & Premium
rice
• Sugar
• Grains
• Pulses & Specialty
Crops
• Coal
• Freight Forwarding
• Logistics
Operations
• Warehousing
Operations
• Food Products
• Roastery
• Non Food Products
• Brand Management
Farming
Operations
Milling
Operations
Processing
Operations Packing Units
Global
merchanting
operations
Freight &
Logistics
Retail
distribution
Opportunity for downstream
value chain integration via
SMEG Acquisition
Phoenix had already made strides in upstream integration with farming and milling operations
An opportunity came to acquire SMEG, an integrated logistics & distribution company in the UAE
SMEG acquisition led to improved value creation due to synergies
Next strategic intent was for downstream integration via distribution and brand creation in its markets
4

5. Phoenix Acquired SMEG in 2016 to Drive Downstream Integration
and Business Expansion
Setting the Context
Initial due diligence commenced
in 2016
Potential areas of synergy and
cost savings examined and
analyzed in detail
Strategy going forward chalked
out and agreed upon by global
Phoenix team
Delivering
Business Value
Team
Expertise
(Brand Mgmt.)
Trade
Channel
Coverage
(Brand
Visibility)
Supply
Chain
Infra
(Brand
Accessibility)
Business Synergies
Supply
Network
 Channel to directly reach
shelves of marquee brands
such as Carrefour, COOPs,
and Spinneys
 Knowledge of commodities,
process and risk
management
Customer
Network
 Experience of brand
creation and management
 Potential to develop and
distribute private labels
Products
Network
 Improved basket of
products such as rice,
beans, pulses, lentils ,and
nuts
 Upstream integration and
deep relationships with
suppliers and transporters
5

6. SMEG Business blueprint in the region
Managing Multiple Business Lines
6
Distribution
(Food / Non-Food)
• Launched in 2012
• Distribution of FMCG
Products consisting of
Principal Owned Brands &
SMEG Brands across the UAE
• 100K sq. ft. warehouse space
in UAE with fleet of 35
delivery vehicles serving
various trade channels
1
Business Dev.
and Re-Exports
• Launched in 2013
• Serves retail distributors in
other Middle Eastern market
- based out of the UAE
• Demand centered around
bio-degradable consumables
and personal care products
• Currently serving KSA,
Kuwait, Qatar, Oman,
Bahrain, Jordan
2
Roastery
• Launched in 2015
• Serves self-service and
managed kiosks operated by
SMEG across trade channels
• Key categories: Nuts, dry
fruits, dates, spices, pulses,
Arabic sweets, honey, and
jellies
• Expanding counter top
product delivery portfolio
4
Mfg. of Biodegradable
Plastics
• Acquired Virgin Plastics in 2017
• Provides end-to-end
manufacturing support for
SMEG owned brand portfolio
of garbage bags: Production
facility in Ajman, UAE
• Acquired Al Baraka Plastics in
2018 to augment capacity
• Key categories: Bio-degradable
garbage bags, shopping bags
and table covers
5
Private Labeling
• Launched in 2014
• Provides end-to-end support
for retailer’s own brand
portfolio
• Backward integrated with
own packing facility in Ajman
• Key categories: Packaged
food – rice, (dry) nuts,
pulses, spices, & sugar
3
Distribution
(Lifestyle)
• Acquired Desert Style in 2017
to gain entry into the lifestyle
segment
• Sole distributors for Sports
brands like Lotto and the
Liverpool Fan Club
merchandise
• Cater to the lifestyle segment
through brands like Jansport,
Tretorn, Wrangler (Shoes),
Lego (Bags), Crep Protect,
Munkees & Von Dutch
6

7. Retail Distribution in the UAE
7

8. Extensive Distribution Network in the UAE
Distributing owned and managed brands in the UAE
Extensive reach in UAE
Note: Volume distribution based on Jan-Feb 2017 data
Distributing to
marquee customers
Secured partnerships with
leading supermarket and
hypermarket chains in UAE
Managed fleet of more than
20 dedicated delivery vehicles
Extensive network and
relationship servicing leading
FMCG brands and SMEG brands
Key brands
6%
Ajman
6%
Al Ain
18%
46%
Abu Dhabi
14%
Dubai
RAK
4%2%
Others
3%
Fujairah
Sharjah
8
Bio-degradable
Consumables
Personal Care
Lifestyle
Stationery
Household
Disposable
Packaged Food
Categories SMEG Brands
-
-
Zarah
Enviro
Care
Cotton
Soft
Action
Blades
-
-
Managed Brands
Lotto
Shoes
ITC
Home products

9. Integrating with other categories: Zarah is our flagship food brand
across categories and sales channels
9
Food Product Portfolio: Zarah
Zarah is our in-house private label brand in several categories
It was developed from close observation of sales data at our
retail partners and careful gauging of market need and
synergies with Phoenix
It is rapidly establishing itself as a trusted brand in the hearts
and minds of consumers due to the holistic focus on quality
Launched a range of organic products including rice, brown
rice, spices, sugar, and canned foods
Promoted on social media through campaigns on Facebook
and Instagram

10. Our portfolio of Oxo-Biodegradable & Anti-Bacterial Garbage Bags
enjoy a Market Leadership Position in the UAE
10
Biodegradable Garbage Bag Portfolio:
Enviro Care, Earth Choice, Home Care
Nature’s Enviro Care, and Bacti Guard
Manufactured through captive plants in Ajman (Virgin Plastics)
and Abu Dhabi
First to launch biodegradable bags, anti-bacterial bags, sufra
rolls, and scented bags in the market
Distributed through all key Hypermarket and Supermarket
chains in the UAE – Lulu, Carrefour, Spinneys, and the
Cooperatives
Also available across strategic markets in the GCC countries
through indirect distribution channels
Promoted on social media and the retail space through a
perception change campaign to help save the environment
Use 100% biodegradable
garbage bags in your bins,
instead of shopping bags:
make a 1% change today,
and do your bit to save the
environment
TM

11. English Blazer & Bond Street: Brand Acquisitions to Accelerate Growth
of Personal Care Portfolio and Reach New Consumers
11
Acquired the prestigious portfolio of English Blazer &
Bond Street fragrances, eau de toilettes, and talcum
powders that cater to the men’s audience
Acquired from Bond Street Cosmetics, UK
English Blazer has been a premier brand since its
inception in i951, while Bond Street has been a
favourite since 1917
Currently retailed across 18 countries with aggressive
plans to expand presence to 30 strategic markets

12. Integrating with other series of brands: Non-Food Categories Covering a
wide array of Consumer Goods
12

13. Extensive Customer Network
Serving Leading Retailers in UAE
13
Customer Network
Developed strong customer
relationships over the course of last
5 years via expert brand
management and sales team
Support retailers with an
experienced and exclusive
merchandising team
Delivers orders within 48 hours –
setting a high benchmark of
service quality
Established a cost efficient modern
trade Route-to-Market
Servicing all trade channels,
capturing demand across the
segment including B and C class
Products also serviced in over 400 B-Class stores.
Customer Coverage
24
21
23
12
11
8
8
Customer Coverage
56
28
22
15
49
43
25
Customer Coverage
7
6
4
3
3
*Now part of Carrefour in the region
*

14. Re-Export across GCC Markets
14

15. Serving other Middle Eastern Markets
Increasing SMEG Footprint across Middle East & North Africa
Note: Volume distribution based on Jan-Feb 2017 data
Business SnapshotBusiness VolumeMiddle East Footprint
Key Brands
• Nature’s
Enviro Care
• Cotton Soft
• Platinum Care
• Action Blades
• Natures Organics
• Earth Choice
KSA
JORDAN KUWAIT
QATAR
OMAN
BAHRAIN
UAE HUB
10%
12%
9%
Appointing exclusive
distributors to all the
countries in the Middle
East market
Growing market share in
the categories that we own
Launching SMEG owned
brands
Expanding business to new
markets in MENA
KSA
10%
9%
12%
68%
Kuwait
Oman
Qatar
2017 YTD
15

16. Leverage the Phoenix presence and drive further expansion in to
MENA and Africa regions
16
Potential for Geographic Expansion
Robust Infrastructural
Backbone
 SMEG currently sells
across GCC area
 By leveraging Phoenix
global presence, new
markets can be unlocked
 Immediate focus areas is
Qatar followed by
expansion into Africa
Currently Operating
Area of Future Expansion

17. Managing In-House Roastery Counters
17

18. Moreover, Roastery Business Provides an Access to End Consumers for
Extensive Product Range
18
Regional Distribution
 Abu Dhabi and Dubai
contribute 70%+ of the
roastery business
 Nuts and dry fruits as high
demand categories
 Pulses and spices present
opportunity to drive growth
Roastery Improves Consumer Image
Roastery business allowed us to
transform from wholesaler to retail
purveyor of nuts and spices
Improved access to customer
allows us to tailor our offerings
basis profiling
Positive brand association of being
fresh, pure, and wholesome
Roastery Improves Consumer Image
Planned Expansions
Abu Dhabi
Dubai
Sharjah
Ajman
Ras Al Khaimah
Umm Al Quwain Fujairah
Sharjah
Dubai
Phoenix Roastery Product
Portfolio
Nuts
Spices
Key Advantages:
• Ready access to consumer
base
• Wide and deep product access
through Phoenix’s Global
Network
• Business growth driver given
current consumer traction

19. Private Label Management
19

20. Customised Private Label Management
20
Processing: UAE
Leading Player In:
 Sugar : 37000 MT
 Almond : 600 MT
 Walnuts : 600 MT
 Cashew Kernels : 720 MT
 Pistachios : 600 MT
 Cardamom : 240 MT
 Black Pepper : 1200 MT
 Rice : 12000 MT
 Pulses : 8000 MT
Sabah is a specialist unit that focuses on delivering operational excellence and quality to all brands and retail chains that look at a composite
private labeling solution for the UAE market. Sabah services extend from sourcing, packaging, warehousing, logistics, quality control, and
packaging design development. Our current clients include dry food private labels for Zarah (Rice, Pulses, Spices, and Sugar), and retail chains
like Sharjah Coop & Union Coop.

21. Manufacture of biodegradable & anti-bacterial plastics
21
&

22. Factory Profile
SMEG Orchestrated Upstream Acquisition of Virgin Plastics & Al Baraka Plastics
Enabling Ownership of Entire Oxo-Biodegradable Consumables Value Chain
22
Acquisition Rationale
Close partnership with retail customers
generated insight that oxo-
biodegradable plastic bags category was
underserved
It was desirable to back-integrate, since
SMEG already had extensive logistics
and distribution capability
Hence acquisition of Virgin Plastic
Factory was executed, to own the value
chain, increase production capacity and
scale the business
Virgin Plastic: ~38K sq. ft. factory in Ajman
Al Baraka: Plant based at Abu Dhabi running at capacity
thanks to private label orders from Carrefour and Lulu
Capacity to produce all manner of oxo-biodegradable
garbage bags, liners, rolls, laundry bags and carry bags
Phoenix can further extend
presence and sales into MENA
region
UAE Govt is expected to restrict
plastic usage to oxo-biodegradable
only
Growing consumer awareness and
demand for eco-friendly products
will also drive sales
Factory and Machines
Growth Path

23. Distribution of Sportswear & Lifestyle brands
23

24. SMEG Expanded into the Lifestyle Segment in the UAE and GCC Markets
through the Acquisition of Desert Style LLC
24
Business Overview
Distribute a portfolio of premium brands across the UAE and
strategic GCC markets
Market leader in backpacks category in the UAE with Jansport
targeting college and office goers
Promise a lifetime guarantee world-wide
Lego bags target the junior school-goers
Dominant player in sportswear category with Lotto Shoes,
Apparel, and Gym kits
The LFC merchandise has a huge following among the fan base
of the Club and its players
Crep Protect a leading firm from the UK that prevents shoes
from getting scratched or scuffed
Wrangler and Tretorn Shoes are growing brands among those
who wish to stay ahead of the style curve
Distribution managed through prominent retail and lifestyle
marquee brands like Lifestyle, Sun & Sands, Magrudys,
Sportland, Adventure HQ, Stadium, Shoezies, Jawad Group,
and an online presence on Namshi.com

25. Management Team
25

26. Committed Industry Veterans Driving the Business
Combined 100+ years of experience of running brand management and distribution network in the region
26
Gaurav Dhawan
Chairman
• 20+ years of experience
in international trade,
business strategy and
finance management
• Established the business
activities of Phoenix in
East Africa and led the
Rice and Sugar Business
before taking over as
Global Chairman & CEO
in Aug 2008
• Today, Phoenix is
amongst the top three
international rice
traders and the group’s
revenue is in excess of
USD 2Bn
Behzad Khan
VP Distribution
• 20+ years experience in
the UAE and the
Middle East market,
both in Distribution
and as a Principal and a
Sales & Market
Development Specialist
• Experienced in Channel
& Distribution
management, Sales &
Marketing, Key
Account Management,
& Customer
Relationship
Ajit Kumar
VP Exports and NPD
• 15+ years experience
in sales and marketing
• Experience in the UAE
market both as
Principal and
Distributor for FMCG
(Food and Non Food),
and Healthcare
Indu Mouli
CEO
• Has proven track record
of achievements in
creating and
establishing brands and
businesses within the
FMCG industry for Food
& Non Food products
• Was a part of the Senior
Management in New
Medical Centre Trading
LLC for 19 years where
he led the Agencies
Division for the entire
UAE market team as
General Manager –
Sales achieving an
annual turnover of
AED 600Mn

27. Strong Back-End Infrastructure for growth
27

28. Supported by Strong Functional Expertise
Committed staff to support all business lines
28
Warehousing Outbound Packing Plastic
Conversion
Finance, HR &
EDP
Distribution
Re-Exports
Roastery
Private
Labeling
BusinessLines
Key Functions and Manpower Count (517)
Manpower Count
180
80
44
34
140
39
Sales &
Merchandising

29. Strategic Investments in the works to Drive Warehouse Automation and
enable smooth scaling of order volumes
29
Robust Infrastructural
Backbone
Significant investments into
warehouse expansion
and automation
Deployment of warehouse
management systems to
make order handling
scalable and efficient
Targeted sales & marketing
to expand customer base

30. Operations driven by our Merchandising Team: Backbone of our
Reliability and Customer Service, Ensuring Deep Partner Relationships
30
 From the warehouse to the supermarket aisle, our dedicated and loyal merchandising staff are present daily to ensure high degree
of customer satisfaction at the point of purchase
 Large, distributed team to tackle different channels in a differentiated manner
 Dedicated product managers to understand and activate local market needs
 Deep relationships with channel partners built over years of smooth delivery and exceeding commitments
3K+ Km Driven
Everyday
500K+ Products
managed on Shelves
100+ Merchandizing
team visits per day
100% On-Time
Deliveries
High Customer
Satisfaction

31. SMEG Way ahead
2018 is the year of
growth. Acquisition of
Baraka to support
growing demand of
biodegradable plastics
New brands under
distribution
management:
Paperboat, Nautilius,
Americana Olives.
Focus on profitable non
food :disposables
bamboo ware, personal
care: English blazer and
Bond Street
Business Risks
Financial
 Currency : Limited as AED
pegged to Dollar.
 Interest : WC flexible as per
market, Auto loans moved
to long term leasing instead
of mortgaged.
Operational
 Raw material : Knowledge
of commodities, demand
planning and SNOP process
3 months price hedged back
to back. Promotion funds
COGS depended
Market
Credit
 Sell into A and B class FMCG
stores in UAE. Do NOT have
van sales operations.
 Strict AR process &
monitoring KYC for each
customer, credit limit and
monthly AR meetings.
 Credit Insurance
31
37,332
58,311
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
2017
17,410
221,758
2018(F)
360,926
44,616
428,929
2019(F)
504,899
2020(F)
Profit AED ‘000
Revenue AED ‘000

32. Forward looking statements
This presentation contains forward-looking statements. These statements are based on current
estimates and projection of SMEG Distribution DMCC and its subsidiaries, management, and currently
available information. They are not guarantees of future performance, involve certain risk and
uncertainties that are difficult to predict and are based upon assumptions as to future events that may
not prove to be accurate. Many factors could cause the actual results, performance or achievements of
SMEG Distribution DMCC and its subsidiaries to be materially different from those that may be
expressed or implied by such statements.
Internal document for restricted circulationonly
© January 2019, All rightsreserved.
SMEG DISTRIBUTION
Office#1001,
Saheel1,
Al Nahda1
P.O.Box 31369.
Tel: +971 4 2662340
www.smegdistribution.com