Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2016 Earnings Presentation
18 slides from Fraser & Neave's earnings presentation, Nov 7, 2016
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: FY2016 Performance Highlights
FY2016 Performance Highlights 101%1 Profit After Tax Growth Strong operating performance in the full-year ended 30 September 2016 (“FY2016”) • Impacted by adverse foreign exchange effect and brand investments costs in new product and market launches • Food & Beverage EBIT up 32%; margin improved to
Slide 4: Group Financial Highlights
FY2016 Group Financial Highlights Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $1,978.6 $179.2 ▼ 6.7% ▲ 36.2% Profit after tax1 Gearing (millions) (millions) $165.7 $908.5 (net cash) ▲ 101.0% ▲5.0%3 Dividend per share Earnings per share (basic)1,2 (cents) (cents) 4.54 7.5
Slide 5: Revenue Down 6.7%
FY2016 Revenue Down 6.7% due to negative translation effects, despite volume growth $2,121m Revenue by Business Segment FY2016 ($) Revenue by Business Segment (%) $1,979m -6.7% Dairies 55% Publg & Print $1,979m 16% $1,141m $1,099m -3.7% -10.5% Beverages 29% $639m FY2016 $572m Revenue by Geography(%)
Slide 6: Revenue | Beverages
FY2016 Revenue | Beverages Revenue declined 10% on weaker Ringgit, competitive pricing in Malaysia and loss of Red Bull sales Beverages Malaysia (-16%; -9% in constant Volume Growth currency) (Key Brands) (%) - Volume increased marginally, despite lost sales from Red Bull, due to effective execution
Slide 7: Revenue | Dairies
FY2016 Revenue | Dairies Revenue fell 4%, impacted by negative translation effects and increased pricing pressures Dairies Malaysia (-9%; -1% in constant Volume Growth currency) (%) - Impacted by weaker Ringgit and increasing end-consumer pricing pressures +3% +1% - Higher export sales have offset i
Slide 8: Revenue | Publishing & Printing
FY2016 Revenue | Publishing & Printing • Retail and Distribution divisions recorded revenue gains • Strong sales performance in airport retail and high street stores in Singapore • Higher partwork sales in Hong Kong • Higher contribution from Magazine Distribution in Singapore • Publishing and Print
Slide 9: EBIT Grew 36.2%
FY2016 EBIT Grew 36.2% Profit growth supported by Dairies, despite negative translation impact EBIT by Business Segment FY2016 FY16 ($) FY15 EBIT EBIT by Business Segment (%) EBIT Margin Publg 10.8% Margin 9.1% 6.0% 4.0% 6.0% & 6.2% $179m FY15 FY16 Print EBIT EBIT Dairies -3% 66% $132m Margin Margin
Slide 10: EBIT | Beverages
FY2016 EBIT | Beverages Weaker Ringgit, increased pricing pressures and lost contribution from Red Bull impacted earnings Beverages Malaysia (-49%; -45% in constant EBIT currency) − EBIT impacted by loss of contribution from Red Bull, increased pricing pressures and higher tactical discounts offered
Slide 11: EBIT | Dairies
FY2016 EBIT | Dairies Earnings surged 72%; margin expansion on the back of higher contribution from Malaysia and Thailand EBIT Dairies Malaysia (+34%; +46% in constant +72% -nm- +65% currency) +34% Others - Driven by lower input costs Others $4m - Weaker Ringgit affected extent of earnings -$8m Thai
Slide 12: EBIT | Publishing & Printing
FY2016 EBIT | Publishing & Printing • Lower revenue, investments made in digital projects, lower margins from US textbook sales and foreign exchange losses adversely impacted earnings • Improvements in cost management and scale of efficiencies, and the absence of a one-off catch up of depreciation c
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management Key Financials • Dividend of 4.5 cents per share1 FY2015 FY2016 • Dividend payout ratio of 60% Total Equity2 $2,556m $3,153m • Takes into account Group’s capital position Total Assets $3,143m $3,773m and near-term cap
Slide 14: Key Developments: Investing for Growth
KEY DEVELOPMENTS: Investing for Growth
Slide 15: Strengthening market positions in primary markets
Strengthening market positions in primary markets MALAYSIA, THAILAND : INVESTING FOR FUTURE GROWTH THB 300 MILLION NEW FILLING AND PACKAGING LINE MILLION In Rojana, Thailand; operational in March 2016 RM 100 MILLION NEW SOFT DRINKS PLANT MILLION Expansion in East Malaysia; doubling capacity; operati
Slide 16: Strengthening market positions in primary markets
Strengthening market positions in primary markets RM NEW ASEPTIC COLD-FILLING PET BOTTLE LINE 180 Offers new formulations and packaging formats Reduces PET resin packaging material by 40% Produces 6.5 million cases per year MILLION Artist’s impression of the facility STATE-OF-THE-ART FACILITY, Shah
Slide 17: Expand and deepen route-to-market
Strengthening market positions in primary markets EXPAND AND DEEPEN ROUTE-TO-MARKET S$ ACQUIRED VENDING MACHINE NETWORK 29 Increased brand visibility and product availability in Singapore #2 vending player in Singapore Integrated vending businesses MILLION Completed in July 2016 INTEGRATION OF SOFT
Slide 18: 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