Sappe Public Company Ltd · SET:SAPPE
Sappe Public — Q4 2023 Earnings Presentation
57 slides from Sappe Public's earnings presentation, February 2024
Slide 1: Performance Highlights 2023 & Direction 2024
Performance Highlights 2023 & Direction 2024 SAPPE PUBLIC COMPANY LIMITED 1
Slide 2: Agenda
Agenda 01 Financial Performance Q4’2023 02 Business Updates 03 Strategy & Direction 2024
Slide 3: Who We Are
WHO WE ARE SAPPE is well-recognized as the leader of innovative drinks and pioneer of functional drinks in Thailand. Sappe has been running business with its determination that “We better people’s lives through our innovative spirit.” The company applies innovations to drive the business creatively
Slide 4: Sappe Performance Consolidation
Sappe Performance Consolidation Sappe PCL SAPPE Europe SAPPE HOLDING (60%) (100%) ALL COCO (51%) Domestic International OEM Danone Sappe (25%) Own Brands Own Brands M-Intelligence (16.2%) WOPE (60%) Sappe Philippines Distributor Distributor Corporation (100%) Dormant Company Collaborate • Sappe HK •
Slide 5: Our Journey of Becoming a Global Beverage Player
Our Journey of Becoming a Global Beverage Player Internationalization Phase Since 1970s.. Growth Phase 2022 - 2023 Succeed in Korea and France with Establishment Phase 2021 Korea & France first strategy Sappe x 2019 Workpoint Achieved highest 2016 ever revenue and 2014 JV (25% stake) net profit 2013
Slide 6: Product Categories
Product Categories Large Portfolio with Market Leading Brands and Products Juice Drinks Functional Drinks Functional Powders Healthier Snacks Supplements & Others Unique and refreshing juices Range of products targeting Instant powders for dietary Snacks with healthy Other innovative products – beau
Slide 7: Innovation is the Core of Our DNA
Innovation is the Core of Our DNA 3 Pillars of Innovation Strategies In-house Innovation Business Partnership InnoStudio Internal division to create innovative Relationship with leading enterprises Innovative ideas x Local goodness products Local Creativity goodness 27 Innovation team members 7 New
Slide 8: 1. Financial Performance Q4'23
1. Financial Performance Q4’23 8
Slide 9: Q4'23 Key Financial Highlights
Q4’23 Key Financial Highlights Q4’23 Total Revenue Q4’23 Gross Margin 1,252 MB 45.3% +17.3% YoY +4.7% pts YoY Q4’23 SG&A (%) Q4’23 Net Profit 39.6% 33.3% 33.3% 168 MB 27.5% +8.9% YoY +5.8% pts YoY 9
Slide 10: All Time High Revenue Breakdown & Net Profit
All Time High Revenue Breakdown & Net Profit Revenue Net Profit 81 19 17 24 58 42 54 46 65 35 77 23 74 26 83 17 76 24 % 19 % % 42 58 % 54 % 46 % % 35 65 % % 23 77 % 81 % 74 % 26 % 83 % % 76 % % % % % % % % % % % % % % % % % 3,299.5 3,268.1 3,444.2 4,566.4 6,052.6 1,031.7 1,666.7 1,208.7 3,299.5 3,26
Slide 11: Cost of Goods Sold by Quarter
Cost of Goods Sold by Quarter Utilization Rate USD/THB USD/THB USD/THB USD/THB USD/THB Q1'22 = 32.8 Q2'22 = 34.1 Q3'22 = 36.2 Q4'22 = 36.1 Avg. Y22 = 34.8 Q1'23 = 33.8 Q2'23 = 34.2 Q3'23 = 34.8 Q4'23 = 35.8 Avg. Y23 = 34.7 -2.5 pts QoQ -1.3 pts QoQ -1.7 pts QoQ +0.8 pts QoQ -4.0 pts YoY -1.9 pts YoY
Slide 12: SG&A
SG&A Selling Expenses Admin Expenses 2023 • %Selling expenses decreased by -5.2% YoY from logistic costs because export markets are starting to drop. • Admin Expenses increased from 383.3 mb to 512.2 mb (+33.6% YoY) 12
Slide 13: Q4'2023 Revenue
Q4’2023 >90 1,208 Million Baht COUNTRIES TERRITORIES 13
Slide 14: FY'2023 Revenue
FY’2023 >90 6,052 Million Baht COUNTRIES TERRITORIES 14
Slide 15: Q4'2023 (YoY) Top Line Growth by Regions
Q4’2023 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Q4’2023 +17.1% ME & 1,208 Million Baht Others -16.1% America Asia +42.2% +29.9% Thailand +7.8% 15
Slide 16: Y2023 (YoY) Top Line Growth by Regions
Y2023 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Y2023 +97.3% ME & 6,052 Million Baht Others +31.5% America Asia +37.4% +20.9% Thailand +9.6% 16
Slide 17: 2. Business Updates
2. Business Updates 17
Slide 18: International Markets
International Markets 18
Slide 19: International Business Journey
International Business Journey 01 02 03 Trading Model Rising Star model Consumer Market (Gems) • Rebate scheme • Expand coverage • Consumer engagement • Minimize investment • In-depth channel • Brand Love • Trade scheme vs Availability, • Brand of Choice Visibility, Affordability 19
Slide 20: Champion Product
Champion Product • Fruit flavored drink with Nata de coco • Full of extra-large Nata de coco cubes • Variety of choices Naturally Yours with Aloe Vera Cube 20
Slide 21: Overseas Availability
Overseas Availability
Slide 22: Zone Asia
Zone Asia Sales 2,396.8 Million Baht Growth 20.9% YoY ❑ Asia Contribute 39.6% in Y2023 Taiwan Hong Kong ❑ Asia market continues to make a substantial contribution with positive growth. This growth can be attributed primarily to its Philippines successful expansion into a new strategic market, couple
Slide 23: Channel Contribution
Key Countries KOREA Market PHILIPPINES Market INDONESIA Market Channel Contribution Fruit Juice Category 23
Slide 24: Marketing Activities
Marketing Activities BOY AND GIRL DATING 24
Slide 25: MOGU MOGU in Stores & Marketing Activities
MOGU MOGU in Stores & Marketing Activities 25
Slide 26: Marketing Activities
Marketing Activities = . EE vRTR YS -, a ndconsor EEPIRSE , Lucey Daa } ’ P i y . ~ °500 > N " 100 Prizes, _ OCG . verge “ADERBOARD aw 2 -_ TCLICGNOW ne : Fabs) y _ Use)2} points) from) 10) Points: iy iN Tz. i Site . - Z poe Renton master fl —— la = comer SENET SuL | LUCKY DRAW 5 ey LL a ED th ie ae
Slide 27: Beauti Drink: 7 Days Challenge Tiktok Video
BEAUTI DRINK : 7 Days Challenge [Step 1] Drink ‘Beautitox’ low sugar, rich in Chlorophyll for 2-3 days first to detox the skin from the breakout [Step 2] Drink ‘Collaskin’ contains 2,000 mg collagen, vitamin C and E for 4-5 days to glow and tighten the skin from inside out Tiktok Video 3M+ Reach, 15
Slide 28: Marketing Activities
Marketing Activities 28 28
Slide 29: Zone Europe
Zone Europe Sales 1,413.6 Million Baht Growth 97.3% YoY ❑ Europe Contribute 23.4% in Y2023 ❑ Significant growth of Europe market was driven by expanding coverage into MT and in all channel, types including implementing online and trade marketing activity in order to create visibility and increase co
Slide 30: France Market Mogu Mogu
France Market Mogu Mogu New Superstar Fruit Juice Drink Channel Contribution 30
Slide 31: Marketing Activities
Marketing Activities 31
Slide 32: Zone Middle East & Others
Zone Middle East & Others Sales 760.9 Million Baht Growth 31.5% YoY ❑ Middle East & Others Contribute 12.6% in Y2023 LIBYA ❑ The growth in Middle East by increased demand and increased visibility in main Hypermarket and Supermarket also boosted demand by in stores promotion with media social platfor
Slide 33: MOGU MOGU in Stores & Marketing Activities
MOGU MOGU in Stores & Marketing Activities 33
Slide 34: Zone America
Zone America Sales 325.0 Million Baht Growth 37.4% YoY ❑ America Contribute 5.4% in Y2023 ❑ America market growth was driven by penetrating to greenfields area in major mainstream chain market. With the significant growth, also listed products in some key mainstream channel in USA and Canada. and le
Slide 35: MOGU MOGU in Stores & Marketing Activities
MOGU MOGU in Stores & Marketing Activities 35
Slide 36: Domestic Market
Domestic Market “a coce 100%PURE | NAMHOM coco
Slide 37: Sappe Beauti Drink
Su, SAPPE BEAUTI DRINK \SE WES 5, laSU SO UAU BEAUTI DRINK \Weuainu © @SAPPEONLINE aznsonlAatawa wSouduvouswoalnyuinue* ‘ 15 wnASmwu 2566 - 29 nUMWus 2567 OEA@ aoanivosiaSuncid 2567 \ TauninwowuwWauntusn JanuuazInu Susiou! iavoguaunusnaulnddu: tianriou Juriou i © @Sappeonline sBoulnDulerumussintwia
Slide 38: Sappe Beauti Powder Stix
SAPPE BEAUTI POWDER STIX #สิทธิ์ผิวสวยถ้วนหน้า 65M 41M 6.5M Video Views People Engagement Reached CAMPAGN HASHTAG KOLs 100 VDO/ 5 Celebrities Banner 70 Markets/ 32 University 38
Slide 39: Marketing Activities
Marketing Activities AWARENESS ENGAGEMENT 11,730,929 136,572 39
Slide 40: 40
40
Slide 41: B'lue More Taste of Fun - Marketing Activities for NPD
B’LUE MORE TASTE OF FUN - Marketing Activities for NPD IG Reels Tie-in product Facebook Macro pages x 4 3 Things to do to Refresh your life 2.8M Follower CMU Doi Suthep Trekking 4.5M Follower Jaturamit Tiktok Micro KOLs 41
Slide 42: Domestic Market... Focusing on E-Commerce
Domestic Market… Focusing on E-Commerce Trial the New Categories & Segments New Baseline of E-Commerce Achieved Target +26.7% YoY Best Seller 42
Slide 43: All Coco
All Coco Q3/2023 43
Slide 44: Outlook: All Coco Q4/2023
OUTLOOK : ALL COCO Q4/2023 Revenue Net Profit 67% 77% 72% 78% 70% 73% 84% 81% 76% 314.86 316.52 313.27 294.07 67.52 63.44 80.54 82.56 -6% YoY +18% YoY +2.5% QoQ * • Total Revenue from selling goods in Q4/2023 was at 82.56 MB and it had +2.5% growth *NI includes allowance for doubtful accounts of 20.
Slide 45: Outlook: All Coco 2023
OUTLOOK : ALL COCO 2023 Domestic Expanding the coverage of the organic farm in Thailand +93% YoY Increasing POS in the Airport +144% YoY and upgrading to regenerative farming (ROC). (2022: 2023 = 16: 39 POS) International Increasing POS in CVS Store +14% YoY All Coco 5,700 stores (Café menu) All COC
Slide 46: Target Growth 2022-2026
TARGET GROWTH 2022-2026 Sales Y2023 Growth REVENUE +32.5% YoY 10,000 MB. 46
Slide 47: Production Facility
Production Facility State-of-the-art Production Facility to Support Growth Klong 13 factory Projects under construction 2 Manufacturing buildings New manufacturing plant & Utilization rate: +8,500 sqm warehouse space 77%* 4 8 in TH Beverage lines Powder filling lines 2 5 3 new production lines Pouch
Slide 48: 3. Strategy & Direction 2024
3. Strategy & Direction 2024 48
Slide 49: 2024 Outlook
2024 Outlook INTERNATIONAL BUSINESS DOMESTIC MARKET Brand Globalization: Korea First Grow base brands Strategic channel Expansion GROWTH NPD focused Diversify portfolio +20-25% Collaboration YOY Future Growth Future Growth 49
Slide 50: Sappe We Are a Sustainable Company
SAPPE WE ARE A SUSTAINABLE COMPANY
Slide 51: Sappe's Sustainability Story
SAPPE’S SUSTAINABILITY STORY
Slide 52: We Better People's Lives Through Our Innovative Spirit
Sustainability Framework • Employee Development • In-house Innovation • Customer Relations • Human Rights • Partnerships for the Goals • Customer Insight • Circular Economy Packaging WE BETTER PEOPLE’S LIVES THROUGH OUR INNOVATIVE SPIRIT • Responsible Consumption • Responsible Consumption & & Produc
Slide 53: Good Health & Well-Being
GOOD HEALTH & WELL-BEING Ensure safe food and clean water access by enhancing and installing drinking water systems for nearby communities and schools. Ignite creativity in child by providing playgrounds for schools and communities. Enhance well-being for all.
Slide 54: Climate Action
CLIMATE ACTION Circular Economy Affordable & Clean Energy Responsible Consumption & Production
Slide 55: Sustainable Standard
SUSTAINABLE STANDARD ENDURING ESG DIMENSIONS FAIRNESS, HONESTY, TRANSPARENCY AND RESPONSIBILITY TO ALL STAKEHOLDERS EQUALITY
Slide 56: Q&A
Q&A 56 56
Slide 57: The Innovative Spirit
The Innovative Spirit WWW.SAPPE.COM 57 57