Carabao Group Public Company Ltd · SET:CBG
Carabao Group Public — Q1 2017 Earnings Presentation
49 slides from Carabao Group Public's earnings presentation, May 18, 2017
Slide 1: Strictly Private & Confidential, May 2017
Strictly Private & Confidential 0 May 2017
Slide 2: Disclaimer
Disclaimer The provision herein does not constitute legal advice or investment opinions of any kind, neither is it intended as an offer, solicitation for Carabao Group PCL. (“CBG” or “The Group”). The information presented within this material is intended to indicate the Group’s operational and fina
Slide 3: Agenda
Agenda 1Q17 Performance Updates 1) Financials 2) Business Updates 3) Corporate Profile 22
Slide 4: 1Q17 Performance Updates: 1. Financials
1Q17 Performance Updates 1. Financials 3 3
Slide 5: Significant share of Thai energy drink market
Significant share of Thai energy drink market Our volume growth kept going under its own momentum against the market headwind Selling Distribution (Coverage) 78% 84% 84% 90% 91% 91% Selling Distribution (Coverage) 95% 95% 95% 96% 96% 96% 47.7% 46.9% 46.8% 44.4% 43.6% 39.9% 2012 2013 2014 2015 2016 Y
Slide 6: Thai energy drink and its geographical segmentations
Thai energy drink and its geographical segmentations We took lead in the central region and now look forward to the same in other hotspots Thai energy drink market Central Region by geographical segmentation 33% 33% 33% 33% 33% Northeast 32% 31% 31% 31% 31% South 30% 9% North 21% Greater 1Q16 2Q16 3
Slide 7: Total revenue from sales
Total revenue from sales Both domestic sales (+30% yoy) and export sales (+24% yoy) experienced solid growth (Baht mil) 2,858 9,965 2,688 7,448 7,753 2,102 4Q16 1Q17 1Q16 FY14 FY15 FY16 BREAKDOWN OF DOMESTIC AND EXPORT SALES 28% 29% 34% 33% Export Domestic 72% 71% 66% 67% FY14 FY15 FY16 1Q17 6 6
Slide 8: Breakdown of our domestic sales
Breakdown of our domestic sales Key growth driver Domestic : Stronger push through cash van route to market and pull strategies deployed to paint growth on both existing and new product groups (Baht Mill) 6,603 Sport Drink 1% 5,358 5,477 Drinking Water 1% 1Q17 10% Coffee +29.8% DOMESTIC 1,820 1,801
Slide 9: Overseas sales by key export countries
Overseas sales by key export countries CLMV (+21% yoy) made another bold step ahead in driving growth in export sales despite our sooner-to-be debottlenecked canning production lines (Baht Mill) 3,362 4% 2,276 2,094 1Q17 +24% OVERSEAS 4% 1,038 888 SALES 716 91% 1% others 4Q16 1Q17 1Q16 FY14 FY15 FY1
Slide 10: Gross profits margin overview
Gross profits margin overview GPM decreased from the angles of our dynamic change in product mix as well as increase in certain production costs i.e. sugar, energy and related packaging materials TOTAL 33.7% 36.9% 35.9% 33.9% 37.3% 32.9% 32.40% 33.80% 33.20% 34.70% 34.76% 31.70% 38.6% 39.10% 12.8% 3
Slide 11: Statement of comprehensive income
Statement of comprehensive income We have invested for a shareholding of 51% in Intercarabao Limited (ICUK), triggering consolidation of its financial performance and position from 4Q16 onwards Unit: THB million 2015 2016 FY2016 4Q16 1Q17 1Q17 1Q16 %sales %sales Revenue from sales 7,753 9,965 100.0%
Slide 12: Statement of financial position
Statement of financial position Borrowings increased to THB 1,250mn for expanded production capacities in anticipation of growth prospect in our energy drink products STATEMENT OF FINANCIAL POSITION Unit THB million ASSETS Dec-16 Mar-17 Change LIABILITIES Dec-16 Mar-17 Change Current Assets Current
Slide 13: 1Q17 Performance Updates: 2. Business Updates
1Q17 Performance Updates 2. Business Updates 12 12
Slide 14: UK Business Update
UK Business Update • Be the title sponsor of the EFL Cup for 3 years which is worth GBP 18 million and runs from July 2017-2020 • EFL Cup will become the “Carabao Cup” 13 13
Slide 15: UK Business Update (Cont.)
UK Business Update (Cont.) Timings are changing as we engage with more customers Current Customers 450 200 300 240 2,900 1,000 248 650 54 Stores Stores Stores Stores Stores Stores Stores Stores Stores 45 50 100 3,600 Stores Stores Stores Stores Potential Customers We continue to seek new areas of op
Slide 16: UK Business Update (Cont.)
UK Business Update (Cont.) We are now live in Morrison ,Rank No.4 of total energy drink market Retailer Total Soft Drinks % Value Share vs. Total Energy Drinks Total Soft Drinks Total Energy Drinks 22.5 POTENTIAL CURRENT 16.9 12.4 11.3 11.6 8.4 8.2 6.0 6.6 4.9 4.5 1.1 15 th 16 Source: Kantar WorldPa
Slide 17: People's Republic of China (PRC) Business Update
People's Republic of China (PRC) Business Update MT and TT account for 20% and 80% respectively of the market • Energy Drink in China Market were the world’s second largest • Consumption per capita of approx. 1-2 liters per capita • . Beijing (Developed countries with consumption per capita of appro
Slide 18: People's Republic of China (PRC) Business Update
People's Republic of China (PRC) Business Update CBG stands to reap the harvest in an aftermath of our decision to withdraw from the Greater China Investment Project Have no exposure to potential loss arising from equity investments during the start-up years; Enjoy upside from (1) manufacturing
Slide 19: Marketing plans in the PRC market (Cont.)
Marketing plans in the PRC market (Cont.) The marketing plans in the PRC market including advertising media and promotional activities in both above the line and below the line 18 20
Slide 20: Marketing plans in the PRC market (Cont.)
Marketing plans in the PRC market (Cont.) 19 21
Slide 21: Marketing plans in the PRC market (Cont.)
Marketing plans in the PRC market (Cont.) 20 22
Slide 22: TV ads. in the PRC Market (Cont.)
TV ads. in the PRC Market (Cont.) 21 23
Slide 23: New Factories Progress
New Factories Progress APG FURNACE 2 –59.38 % PROGRESS CAN FILLING FACTORY – Commercial operation in Increasing production capacity for amber glass bottle in May 2017 order to support ongoing growth of Carabaodang bottles Increase can filling production capacity (beginning with 2 new Production Capa
Slide 24: Appendix: 3. Corporate Profile
Appendix 3.Corporate Profile 23
Slide 25: Carabao: More than just an energy drink
Carabao : More than just an energy drink
Slide 26: Founders
FOUNDERS Mr. Sathien Setthasit Miss Nutchamai Mr. Yuenyong Opakul Thanombooncharoen (Aed Carabao) CEO Managing Director Senior Deputy Managing Director Founded Tawandang Managed business with Mr. Formed the origin of German Brewery in 1999 Sathien since 1999 Carabao - the Carabao band Founded Caraba
Slide 27: Strong brand recognition associated with Carabao band
Strong brand recognition associated with Carabao band Carabao is Thailand’s legendary music-for-life & one of the most respected band in Thailand Songs for life music are reflections of aspects of Thai society For over 30 years, Carabao songs have been known to speak to the Thai people in a manner t
Slide 28: The Fighting Spirit
From Band to Brand The Buffalo The Bird Strength, Power, Freedom, Unity, Creativity, Perseverance, Respect Self Expression “Carabao” is an energy drink inspired by the resilient, positive spirit of the Thai people. It is more than an energy drink, it is a Positive Energy Enabler. “The Fighting Spiri
Slide 29: Shareholding & Company Structure
Shareholding & Company Structure Holding Subsidiaries CARABAO GROUP Operating Subsidiaries Thailand Outside Thailand (2) 100% 100% 100% 74% 100% 100% CBD DCM APG APC CBHHK CBTHK (1) 51% Manufactures, Manages the • Manufactures and • Manufactures and markets and sells domestic supplies glass bott
Slide 30: Management Team
Management Team INSTRUMENTAL TO BUILDING COMPANY’S SUCCESS Mr. Sathien Setthasit MISSION Chief Executive Officer 1. The company seeks to create customer satisfaction through proactive marketing Co-Founder of the Group in 2001 innovations 2. The company is determined to expand its global footprint vi
Slide 31: Key Milestones and Developments
Key Milestones and Developments Jul 2016 Oct 2016 Carabao June 2017 Carabao 3in1 Coffee RTD Coffee Sponsorship of the was launched EFL Cup; The was launched Carabao Cup. 2016 Carabao 2015 2015 Start establishing Nov 2014 2014 Drinking Water was own distribution centers Carabao Group began Start Plus
Slide 32: Milestones and Developments
Milestones and Developments • Paid up capital of APG increased in full to 450 mil. Bt. • Paid up capital of CBG increased to 1,000 mil Bt. 2014 2016 • New Carabao products • Krones bottling line installed 2003 (Water & 3in1 & RTD (increases total max. cap. to Coffee) 2010 2012 • Registered capital 1
Slide 33: The Manufacturing Facilities
The Manufacturing Facilities Certification Energy drink PRODUCTION FACILITY s: Plant location: 50 KM from central Bangkok Bottles filling 9 production lines Now: Prod. Cap. of 1,080 million bottles p.a. 1Q2018 Expansion: Prod. Cap. of 1,535 million bottles p.a. Cans filling 3 production lines Now: P
Slide 34: The Manufacturing Facilities
The Manufacturing Facilities Certifications: APG glass bottle manufacturing facility • Prod. Cap. of 650 million bottles p.a. • To expand to 1,300 million bottles p.a. by early 2018 • Maximum molten glass production of 310X2 tons per day • State-of-the-art technology using glass cullet as raw materi
Slide 35: Marketing Channels
Marketing Channels Dedicated in-house marketing team has established strong relationships with multiple media channels, enabling us to react to market trends and minimize lead time and costs Flexible uses of multimedia channels to reach target consumers: media advertising, on-the-ground marketing te
Slide 36: Comprehensive Distribution Network
Comprehensive Distribution Network 1. Traditional Trade – 75%1 A. 3-tiered agent distribution network – 49% Tier 1 > 50 agents … End Consumers Tier 2 Tier 2 > 1,200 sub- Carabao Group agents … … Tier 3 Tier 3 Tier 3 Traditional retail shops B. Cash Vans – 26%2 2. Modern Trade – 24%1 Convenience stor
Slide 37: Cash Vans & DCs nationwide
Cash Vans & DCs nationwide 10 – 15 Vans / DC 40 retails / Van / Day 7 DCs 10,000 retails / DC 320,000 retail network 4 DCs 9 DCs W 2 DCs 3 DCs 6 DCs Target reached since October 2016: 30 DCs with 337 Vans, covering approx. 320,000 retailers nationwide 36 38 Note : Base on Information at March 2017
Slide 38: Our SKUs (Energy Drink)
Our SKUs (Energy Drink) Carabao Carabao Energy Carabao Energy Carabao Carabao Carabao Energy Drink Carabao Carabao Ginseng Carbonated (The PRC Drink Drink (Original Carbonated Carbonated Carbonated Edition Market) (Original) Export) (Original) (Sugar Free) (Green Apple) • 150ml amber • 250ml • 325ml
Slide 39: Our SKUs (non-Energy Drink)
Our SKUs (non-Energy Drink) Start Plus Carabao Carabao Coffee Carabao Coffee Carabao Coffee Carabao Coffee Products Drinking Water (Rich Aroma) (Espresso) (Robusta) (Espresso) Descriptions • 250ml • 2 size = 600ml • 30 small sticks in • 30 small sticks in 1 • 180ml can • 180ml can glass & 1200ml 1 p
Slide 40: 3rd Party Products in Cash Vans
3 Party Products in Cash Vans RD Products Seaweed Dish Washing Peanuts Fish Snacks Toothbrush Razor Juice Liquid Retail 5 10 5 5 10 10 10 Selling Price (THB) Launch November 2015 April 2016 June 2016 July 2016 Date 1 Products Fabric Softener Squid Snacks Cigarettes Toilet Cleaner Tissue Detergent (1
Slide 41: The Global Market
The Global Market The growth in the Energy Drink market is predicted to continue with sales reaching $62bn by 2019 Europe North America $11.5bn $24.3bn UAE $2.7bn Asia Pacific Africa $14.85bn Latin $2.1bn America $4.7bn Australia $2.7bn The opportunity is to capture 10% of the Global Market by 2019
Slide 42: United Kingdom
65.1 POPULATION (M) UNITED 8.22 KINGDOM 4 LITRES PER CAPITA 1,642 CAN EQUIVALENT (M) 2016 COUNTRY RANK FOR TOTAL ENERGY DRINKS MARKET SIZE $2,348 2016 VALUE OF SALES USD (M) 41 Source: Euromonitor
Slide 43: Strategic Partnership
Strategic Partnership THE WORLD CLASS COMBINATION Principal partner sponsorship value Principal partner sponsorship value = £30* mil./3 seasons (start 2016-2019) = £18* mil./3 seasons (start 2017-2020) The EFL Cup will be renamed the “Carabao Cup” 42 44
Slide 44: Strong push to the shelves by our UK Cash vans
Strong push to the shelves by our UK Cash vans 43 45
Slide 45: China
1,382.3 POPULATION (M) 0.93 China 2 LITRES PER CAPITA 3,932 CAN EQUIVALENT (M) 2016 COUNTRY RANK FOR TOTAL ENERGY DRINKS MARKET SIZE $6,626 2016 VALUE OF SALES USD (M) 44 Source: Euromonitor
Slide 46: Marketing plans in the PRC market (Cont.)
Marketing plans in the PRC market (Cont.) The marketing plans in the PRC market including advertising media and promotional activities in both above the line and below the line 45 47
Slide 47: Marketing plans in the PRC market (Cont.)
Marketing plans in the PRC market (Cont.) 46 48
Slide 48: Statistic Information
Statistic Information Carabao Group PLC. As of 17 May 2017 Closing Price: THB 63.25 Ticker SET: CBG Reuter: CBG.BK Bloomberg: CBG:TB Google Finance: BKK:CBG Listing date 21 November, 2014 Listing Venue SET F&B, SET50 Par Value 1 Baht Shares outstanding (mil.) 1,000 Market Cap. THB 63,250mn/USD1.8 mn
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