Swire Pacific Limited Class A · HKEX:19
Swire Pacific Limited Class A — Investor Presentation (May 2011)
17 slides from Swire Pacific Limited Class A's investor presentation, May 2011
Slide 1: Swire Beverages
Swire Beverages Presented by: Mr. Geoff Cundle, Executive Director May 2011, Hong Kong
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Slide 3: Swire Beverages: A Global Leader with Long Track Record of Excellence
Swire Beverages: A Global Leader with Long Track Record of Excellence Swire Beverages Swire Pacific Limited Sales Volume („10) 100% 87.5% 100% 923 million cases Profits Attributable („10) HKD 674 million Swire Beverages Return on Equity („10) Limited 19.1% Revenue CAGR („08-„10) 100% 41 – 100%
Slide 4: A Snapshot of Our Markets and the China Opportunity
A Snapshot of Our Markets and the China Opportunity An addressable market of 413.4 MM with GDP and per capita consumption of Coca-Cola products at c. 1/9th the US mean, highlighting the compelling opportunity ahead for Swire Beverages… Per Capita Consumption of Coca-Cola Global Footprint & Opportu
Slide 5: What We Do: Flexible and Integrated Business Model
What We Do: Flexible and Integrated Business Model Bottling & Sales & Procurement Customers Manufacturing Distribution Raw material 15 bottling plants in Flexible “go-to- Comprehensive sourcing: operation: market” model: customer coverage – PET, aluminium, – 13 in greater China – Direct stor
Slide 6: Swire Beverages History: Track Record of Successful Growth & Expansion
Swire Beverages History: Track Record of Successful Growth & Expansion Acquired the Opened first Acquired the Opened Nanjing Acquired Sold 600 MM Introduced Coca-Cola bottling Taiwan China’s BC Foods Healthworks cases in new Minute franchise in plant in Coca-Cola largest non- added n
Slide 7: Key Investment Highlights – Excellence Across Markets
Key Investment Highlights – Excellence Across Markets Large Scale Market Leader with Long Track Record of Success Clear Market 1. Leadership in All Principal Markets Leadership Iconic Brand Portfolio Dynamic Product Innovation & Targeted Portfolio Expansion Global Expertise Robust Supply C
Slide 8: Large Scale Market Leader With Long Track Record Of Success
Large Scale Market Leader With Long Track Record Of Success Attractive Financial Performance (2004 – 2010) Revenue (1) Key Highlights (HK$MM) 10,000 8,553 46 year track record of operational excellence 8,001 8,399 8,000 7,066 Swire Beverages holds exclusive rights to sell 5,750 6,000 4,978 5,187
Slide 9: Iconic Brand Portfolio
Iconic Brand Portfolio Sparkling Soft Drinks Still Beverages Sparkling Still World’s leading soft drink brand Beverages The World’s #1 juice brand Soft Drinks c. 2/3 c. 1/3 #1 sparkling soft drink brand in Mainland China of Volume of Volume Hong Kong’s top selling bottled water brand A Leading globa
Slide 10: Dynamic Product Innovation & Targeted Portfolio Expansion
Dynamic Product Innovation & Targeted Portfolio Expansion Number of packaged SKUs has expanded by 10% from 602 to 664 over 2006 -2010 in the US market Sparkling Soft Drinks 5 x 1 billion USD brand Still Beverages Minute Maid Pulpy Milk Global Support from Coca-Cola Innovation Centre in Shanghai
Slide 11: Robust Supply Chain Management & Production Capabilities
Robust Supply Chain Management & Production Capabilities Swire’s 13 Plants in Greater China Swire Capacity (2010) MM Unit Cases Utilisation (%) 2,000 100 80 1,500 Shaanxi Henan 60 Anhui 1,000 40 500 20 Fujian 0 0 Taiwan Mainland USA Hong Kong Taiwan Total Guangdong China* Hong Kong Capacity Utilisat
Slide 12: Unique & Differentiated Geographic Strategy
Unique & Differentiated Geographic Strategy Market Leadership in Common Strong Position in Developed Markets Strategic Focus Developing Market Value Group Best Continuous Management Practices Investment Consolidate brand equity Product and Build consumption and Enhance supply chain marketing
Slide 13: Developed Markets Capabilities & Experience Applied to Mainland China
Developed Markets Capabilities & Experience Applied to Mainland China 10-Year Volume Progression (2001 – 2010) Sales Volume Key Highlights (MM Unit Cases) 1,000 Mainland China „01-„10 CAGR: 17.1% 904 923 Mainland China volumes have increased more than 900 9% five times over the past 10 years: 9% 8
Slide 14: Powerful Distribution Platform & Infrastructure in Mainland China
Powerful Distribution Platform & Infrastructure in Mainland China Over 705,000 Active Outlets in Mainland China Off-trade contributed 69% of value and 78% of volume (1) Sales Infrastructure in Mainland China (2006 – 2010) Active Outlets Coolers Sales Representatives Thousands Thousands 800 450 5
Slide 15: Leadership in Mainland China: The World's Most Attractive Beverage Market
Leadership in Mainland China：The World’s Most Attractive Beverage Market Coca-Cola 2020 vision – Be #1 in NARTD business in every market and every category that's of value to Coca-Cola – One 8oz Coca-Cola serving per head every two weeks in 2008 compared to one every three days by 2020 in Mainland
Slide 16: Supply chain efficiency has helped offset rising commodity prices
Supply chain efficiency has helped offset rising commodity prices Mainland China (Revenue Composition – Own USA (Revenue Composition – Own Production) Production) 100% 100% 80% 80% 37% 43% 59% 58% 60% 60% 22% 19% 40% 40% 16% 16% 30% 23% 20% 20% 23% 22% 12% 16% 0% 3% 4% 0% 2006 2010 2006 2010 Gross C
Slide 17: 2011 and Beyond: The Path to Achieving Our Objectives
2011 and Beyond: The Path to Achieving Our Objectives Expand #1 position across key geographies to deliver “Best-in-Class” results Leverage iconic portfolio of global brands to ensure continued growth and share gains Clear across beverage categories Market Leadership Utilise local market insig