Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2014 Earnings Presentation
21 slides from Fraser & Neave's earnings presentation, 2014
Slide 1: F&N Full Year Financial Highlights
F&N FULL YEAR FINANCIAL HIGHLIGHTS
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: FY2014 Performance Highlights
FY2014 Performance Highlights 29% EBIT growth Strong performance for the year ended 30 September 2014 (“FY2014”) • Strong profit growth in challenging environment • All divisions recorded strong volume growth • Adverse foreign exchange effect impacted profits 3 Full year ended 30 September 2014 11 M
Slide 4: Key financial metrics FY2014
Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $2,421.1 $276.5 ▲ 5.5% ▲ 29.3% EBIT margin Gearing (%) (millions) 11.4% $219 (net cash) ▲ 210bps ▲ -nm- Earnings per share (basic)1,2 Dividend per share 3 (cents) (cents) 10.0 5.0 (capital reduction of $0.42 in Apr 2014) -% ▼ 67
Slide 5: Supported by strong volume growth in Beverages
Supported by strong volume growth in Beverages Revenue by Business Segment FY14 Revenue by Business Segment ($) (%) $2,421m $2,294m +5.5% Dairies 45% Publg & Print $2,421m 15% +5.5% $1,099m Beverages $1,042m +9.3% 40% $969m $887m FY14 Revenue by Geography (%) -2.9% $363m $352m Other ASEAN Malaysia 3
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue growth supported by higher volumes, moderated by weaker Kyat and Ringgit Beverages: Beer Volume Growth (Key Brands) (%) - Volume grew 34% driven by effective marketing and 34% sports sponsorship, and enhanced route-to-market excellence 5% - MYANMAR BEER enjoyed double-dig
Slide 7: Revenue | Dairies
Revenue | Dairies Revenue grew 8%1; Malaysia and Thailand each recorded double-digit volume growth2 Dairies: Malaysia Volume Growth (%) - Volume increased 7%; domestic volume recorded 10% growth, ahead of category 18% - Robust domestic volume growth was supported by effective trade programs and stro
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Education Publishing continued to diversify and grow its customer base • Strong overseas sales partly offset by lower local textbook and home reference sales • Exclusive partnership with Oxford University Press; textbook adoption in Chile; Math in Focus approved in
Slide 9: Profit growth supported by improved margins from Beverages and Dairies Malaysia
Profit growth supported by improved margins from Beverages and Dairies Malaysia FY14 EBIT by Business Segment EBIT by Business Segment (%) ($) +29.3% Beverages $277m 17.9% Others FY14 63% EBIT 15% Margin Publg $277m $214m 13.8% & FY13 EBIT Print $174m Margin +42.4% 2% Dairies 11.4% FY14 20% 9.3% EBI
Slide 10: EBIT | Beverages
EBIT | Beverages Earnings jumped 42% on higher sales and improved margins, despite weaker Kyat and Ringgit Beverages: Beer EBIT - Earnings driven by higher sales, favourable mix and +42% +31% +51% absence of one-off impairment in FY13 $174m - Beer EBIT improved 51% despite higher marketing $122m spe
Slide 11: EBIT | Dairies
EBIT | Dairies Earnings impacted by higher input costs and adverse foreign exchange effect; pricing control stemmed Thailand’s growth Dairies: Malaysia EBIT - EBIT growth of 25% +25% -5% Others - Driven by higher sales, improved production yields and $6m -4% Thailand nm non-recurring expenses in FY2
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing • Significant improvement in earnings on higher earnings from Publishing and Printing • Profitability improved on effective cost control • Benefited from better workflow and savings in operating cost due to consolidation of printing operations in Singapore • Negated by l
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Balance sheet reflects completion of Key Financial Ratios distribution in specie of Frasers Centrepoint FY2014 FY20131 Limited shares Total Equity2 $2,001m $8,878m • Capital distribution of $0.42 per share ($607 Tot
Slide 14: Summary
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Slide 15: Summary
SUMMARY • Maintained leading positions in key markets • Focus on • Strengthening our portfolio: Marketing and product innovation, and M&A • Allocating resources: To ensure capacities and capabilities • Building on/identifying strategic partnerships and extracting synergistic opportunities • Prudent
Slide 16: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited
Slide 17: F&N Group Unaudited Pro-Forma Profit Statement
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 $‘000 FY2013 FY2012 (Restated)1 (Restated)1 Revenue 2,294,119 2,161,302 Cost of sales (1,520,310) (1,467,456) Gross profit 773,809 693,846 Other (expenses)/income (net) (3,886) 2,116 Operating expenses - Distribution (187,
Slide 18: Pro-Forma Profit Statement (cont'd)
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 (cont’d) $‘000 FY2013 FY2012 (Restated)1 (Restated)1 Net finance income/(expense) 39,027 (21,594) Profit before fair value adjustment, taxation and exceptional items 252,898 127,015 Fair value adjustment of investment prop
Slide 19: Pro-Forma Profit Statement (cont'd)
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 (cont’d) $‘000 FY2013 FY2012 (Restated)1 (Restated)1 ATTRIBUTABLE PROFIT TO: Shareholders of the Company - Before fair value adjustment and exceptional items Continuing operations 143,508 67,699 Discontinued operations 401
Slide 20: F&N Group Unaudited Pro-Forma Balance Sheet
F&N Group Unaudited Pro-Forma Balance Sheet As at 30 Sep 2013 $’000 FY2013 FY2012 (Restated)1 (Restated)2 SHARE CAPITAL AND RESERVES Share capital 834,659 768,664 Treasury shares (23) (23) Reserves 1,000,490 827,271 1,835,126 1,595,912 Non-controlling interests 346,023 347,412 2,181,149 1,943,324 Re
Slide 21: Pro-Forma Balance Sheet (cont'd)
F&N Group Unaudited Pro-Forma Balance Sheet As at 30 Sep 2013 (cont’d) $’000 FY2013 FY2012 (Restated)1 (Restated)2 CURRENT ASSETS Inventories 245,828 261,761 Trade receivables 305,445 309,217 Bank fixed deposits and cash and bank balances 697,818 592,416 Other current assets 113,303 134,010 1,362,39