Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Singapore Food Industries — 9M 2008 Earnings Presentation
24 slides from Singapore Exchange's earnings presentation, Nov 4, 2008
Slide 1: 9M 2008 Performance Review
9M 2008 Performance Review Roger Yeo CEO 4 November, 2008 Singapore Food Industries Limited 1 Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Readers can identify some of these statements by forward-looking terms s
Slide 2: Earnings at a Glance
Earnings at a Glance 9M 2008 vs 9M 2007 35.0 7 S$31.4M 30.0 EPS 6 S$24.0M 6.1¢ 25.0 5 EPS S$19.6M S$' mln 20.0 4 Cents 4.7¢ EPS 15.0 3 3.8¢ 10.0 2 5.0 1 0.0 0 9M 2008 9M 2007 FY2007 PATMI EPS 3 PATMI to PBT 3Q 2008 vs 3Q 2007 S$’ mln Change (%) 3Q 2008 3Q 2007 PATMI 5.8 5.5 4.9 Minority Interests 0.
Slide 3: PBT to Operating PBT
PBT to Operating PBT 3Q 2008 vs 3Q 2007 S$’ mln Change 3Q 2008 3Q 2007 (%) PBT 6.7 7.4 (9.9) One-Offs – Australian subsidiaries 0.2 - - impairment of assets net off DAFF grant received – Gain on disposal and liquidation (0.5) - - of subsidiaries Operating PBT 6.4 7.4 (13.7) 5 Operating PBT by Geogra
Slide 4: Singapore P&L Summary
Singapore P&L Summary 3Q 2008 vs 3Q 2007 S$’ mln Change (%) 3Q 2008 3Q 2007 Sales 70.4 66.8 5.4 Gross Profit 15.8 14.5 8.3 Net Other Income / (expense) (0.1) 0.7 NA G&A (6.3) (7.0) (9.3) PBT 9.4 8.2 13.8 3Q 2008 3Q 2007 (%) (%) GP Margins 22.4 21.8 G&A 9.0 10.4 PBT Margins 13.3 12.3 7 Singapore Oper
Slide 5: UK/Ireland P&L Summary
UK/Ireland P&L Summary 3Q 2008 vs 3Q 2007 (‘mln) 3Q 2008 3Q 2007 Change (%) Sales S$80.7 S$87.0 (7.2) £30 £28 6.0 Gross Profit S$18.4 S$24.1 (23.9) Net Other Income/(expense) - (S$0.7) N.A G&A (S$20.9) (S$24.0) (12.8) £7.8 £7.9 (0.6) PBT (S$2.5) (S$0.6) N.A. (£0.9) (£0.2) N.A. 3Q 2008 (%) 3Q 2007 (%
Slide 6: Others – P&L Summary
UK/Ireland Operations 3Q 2008 • UK sales are traditionally lower in the 2Q and 3Q and stronger in 1Q and 4Q. In this 3Q, results were affected by higher raw material costs, affecting margins. • The combined UK/Ireland sales for 3Q 2008 at $80.7 million was 7.2 per cent lower than 3Q 2007. • Removing
Slide 7: PATMI to PBT
PATMI to PBT 9M 2008 vs 9M 2007 S$’ mln Change (%) 9M 2008 9M 2007 PATMI 24.0 19.6 22.6 Minority Interests 2.6 2.2 - Tax – Current Year 9.2 8.9 - Tax – Prior Years Written Back (2.7) - - Tax Subtotal 6.5 8.9 - PBT 33.1 30.7 7.8 13 PBT to Operating PBT 9M 2008 vs 9M 2007 S$’ mln Change (%) 9M 2008 9M
Slide 8: Turnover by Quarters
Operating PBT by Geographical Region 9M 2008 vs 9M 2007 S$’ mln Change (%) 9M 2008 9M 2007 Singapore 23.1 20.3 14.0 UK/Ireland 8.4 9.4 (11.1) Others (0.8) (0.7) N.A Operating PBT 30.7 29.0 5.7 15 Turnover by Quarters 800 $714.9m $636.9m $590.1m $597.1m 221.5 $500.7m 600 196.8 4Q 175.9 179.9 (S$' mln
Slide 9: PBT and PATMI by Quarters
PBT by Quarters 60 $50.4m $47.7m $48.6m 50 $43.4m 17.3 20.0 17.9 $33.1m 40 4Q 16.7 6.7 3Q 30 7.6 7.4 9.7 6.2 2Q 8.3 20 9.6 8.7 1Q 8.4 9.7 10 18.1 12.3 13.2 14.6 10.8 0 2004 2005 2006 2007 2008 17 PATMI by Quarters 40 $35.0m $36.1m $30.2m $31.4m 30 13.1 14.9 $24.0m 11.8 11.8 4Q 5.8 3Q 20 7.1 5.4 4.3
Slide 10: Turnover by Geographical Region
Segmental Results 19 Turnover by Geographical Region 9M 2008 vs 9M 2007 UK/Ireland in £ 'mln -5.6% +5.5% 300 100 80 95 100 250 +13.0% 60 9M 2007 200 9M 2008 40 150 20 0 100 50 -1.2% 0 Singapore UK/Ireland Others 9M 2007 S$ 180.5 S$ 286.8 S$ 26.1 9M 2008 S$ 204.1 S$ 270.8 S$ 25.8 20
Slide 11: PBT by Geographical Region
PBT by Geographical Region 9M 2008 vs 9M 2007 UK/Ireland in £ 'mln -11.1% 3.0 +14.3% 25 2.5 2.8 2.0 2.5 20 9M 2007 1.5 9M 2008 1.0 15 0.5 0.0 -20.4% 10 5 +66.0% 0 Singapore UK/Ireland Others 9M 2007 S$ 20.3 S$ 8.5 S$ 1.9 9M 2008 S$ 23.2 S$ 6.8 S$ 3.1 21 Singapore P&L Summary 9M 2008 vs 9M 2007 S$’ m
Slide 12: UK/Ireland P&L and Sales Summary
UK/Ireland P&L Summary 9M 2008 vs 9M 2007 (‘mln) 9M 2008 9M 2007 Change (%) Sales S$270.8 S$286.8 (5.6) £100 £95 5.5 Gross Profit S$74.3 S$85.2 (12.9) Net Other Income / (expense) (S$0.6) (S$1.9) (70.1) G&A (S$66.9) (S$74.8) (10.6) £24.6 £24.7 (0.1) PBT S$6.8 S$8.5 (20.4) £2.5 £2.8 (11.1) 9M 2008 9M
Slide 13: Others P&L; By Geographical Location
Others – P&L Summary 9M 2008 vs 9M 2007 S$’ mln Change (%) 9M 2008 9M 2007 Sales 25.8 26.1 (1.2) Gross Profit 4.0 3.9 3.8 Net Other Income / (expense) 4.4 3.8 15.1 G&A (5.3) (5.8) (8.9) PBT 3.1 1.9 66.0 PBT (without one-offs) (0.8) (0.7) N.A. 25 By Geographical Location Turnover PBT Assets Capital E
Slide 14: Group Cash Flow Statement
Cash Flows, Balance Sheet Highlights & EVA 27 Group Cash Flow Statement 9M 2008 vs 9M 2007 S$ '000 9M 2008 9M 2007 Profit before taxation 33,092 30,706 EBITDA Adjustments: Share of results of a jointly controlled entity 4 5 Interest expense 3,071 3,358 Interest income (732) (326) Depreciation and am
Slide 15: Group Balance Sheet and EVA Statement
Group Balance Sheet September December S$' 000 2008 2007 Property, plant & equipment 105,365 113,279 Intangible assets 67,049 69,558 JV & other long term assets 1,322 1,547 Inventories 48,339 51,029 Trade and other receivables 103,779 118,698 Cash and bank balances 17,428 26,221 343,282 380,332 Shar
Slide 16: Financial Highlights
Financial Highlights 31 Financial Highlights 9M 2008 vs 9M 2007 S$’ mln Δ Change (%) 9M 2008 9M 2007 Turnover 500.7 493.4 1.5 Gross Margins (%) 24.6 25.9 NA PBT 33.1 30.7 7.8 PATMI 24.0 19.6 22.6 Net after-tax margins (%) 5.3 4.4 NA Earnings per share (cents) 4.7 3.8 22.4 Economic Value Added 17.3 1
Slide 17: Financial Highlights: Returns and Ratios
Financial Highlights 9M2008 vs 9M2007 S$’ mln Δ Change (%) 9M 2008 9M 2007 ROE* (%) 21.3 17.3 NA ROTA* (%) 11.5 9.2 NA Interest Cover (times) 11.8 10.2 15.4 Debt/Equity Ratio 0.4 0.4 - Net Assets per Share (cents) 28.3 29.8 (5.0) EBITDA ($’m) 49.2 49.1 0.1 Capex ($’m) 11.3 6.2 82.9 Note: * Annualise
Slide 18: Singapore Operations
Singapore – S $ Million Sales & PBT 80 70.4 68.5 66.8 66.0 65.1 70 59.1 59.7 57.6 56.2 60 54.0 52.9 50 40 30 20 8.2 9.4 7.5 6.4 4.7 7.0 5.7 5.5 6.5 5.5 5.4 10 0 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 Turnover PBT 35 Singapore Operations 9M 2008 • Singapore opera
Slide 19: Singapore – Updates
Singapore – Updates (9M 2008) • MoU with Jilin City Government – To start a feasibility study an integrated pig farm and processing plant – Potentially a lead into a wider food zone concept • MoU with Sarawak, Malaysia – To start a preliminary study on the Pig Farm Area, Sarawak • MoU with Malaysian
Slide 20: Abattoir & Hog Auction
Abattoir & Hog Auction Average No. of Pigs Per Day 1200 1110 1090 1088 1083 1027 YR 2008 962 974 955 Average No. of Pigs Per Day 1000 1017 YR 2007 925 925 927 800 760 600 400 200 0 2001 2002 2003 2004 2005 2006 2007 Q1 Q2 Q3 Time Period 39 Abattoir & Hog Auction Average Weight Per Pig (kg) 100 80 80
Slide 21: Key Developments & Outlook
Key Developments & Outlook Singapore • Singapore performance in 2008 is expected to be better than 2007. – All Singapore operations on a steady platform. • Food Distribution has reported growth in sales and profit for the first 9 months of the year. We expect trading conditions to be considerably le
Slide 22: UK/Ireland – Updates
UK/Ireland – Updates 9M 2008 • New Covent Garden Soup renewed its sponsorship of the popular early evening ITV series, Britain’s Best Dish, which returned to the nation’s TV screens in September for an 8 week run. • The TV sponsorship will support the winter soup campaign which includes, new family
Slide 23: Key Developments & Outlook
Key Developments & Outlook UK/Ireland • Overall, sales for all core categories in Sterling Pound grew in UK over the 9M period, except for Farmhouse Fare. – Daniels (soup) is expected to continue to grow in the coming winter months. – Farmhouse Fare’s acquisition of a major new customer is expected
Slide 24: FY2008 Outlook; Thank You
FY2008 Outlook Although we expect FY 2008 earnings to be better than FY 2007 at the Group level, continued deterioration in economic conditions and the outcome of Cresset consultations may adversely affect earnings for the full year. Note: This is management’s outlook based on current expectations,
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