Carabao Group Public Company Ltd · SET:CBG
Carabao Group Public — Q1 2018 Earnings Presentation
42 slides from Carabao Group Public's earnings presentation, May 25, 2018
Slide 1: Strictly Private & Confidential, May 2018
Strictly Private & Confidential 0 May 2018
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: Financial Summary
Financial Summary WIN WIN
Slide 4: Total sales
Total sales 1Q18 Strong sales growth driven by overseas business BREAKDOWN OF DOMESTIC AND EXPORT SALES 3
Slide 5: Significant share of Thai energy drink market
Significant share of Thai energy drink market 3M18 energy drink market continued shrinking at approx. -4%yoy Selling Distribution (Coverage) 78% 84% 84% 90% 91% 91% 91% Selling Distribution (Coverage) 95% 95% 95% 96% 96% 95% 95% 4 Source: Nielsen energy drink market report, March 2018 ("Nielsen Repo
Slide 6: Domestic sales
Domestic sales Domestic Product diversification proved in effective DOMESTIC SALES BY CHANNEL SALES CONTRIBUTION FROM CASH VAN STRATEGY 5
Slide 7: Overseas sales
Overseas sales Overseas CLMV performed well above expectation THB mn FY15 FY16 FY17 2Y-CAGR 1Q17 4Q17 1Q18 %YoY %QoQ Cambodia 1,547 2,074 2,489 27% 588 739 1,032 75% 40% Myanmar 223 279 422 38% 105 126 162 55% 29% Vietnam 98 173 356 91% 5 75 74 1281% -1% Yemen 167 202 225 16% 34 112 - -100% -100% Af
Slide 8: Gross profits overview
Gross profits overview Gross Profit got benefit from market diversity Unit: THB million Gross profit margin Domestic GPMs by Product 35.2% 9.3% 10.9% 7
Slide 9: Statement of financial position
Statement of financial position STATEMENT OF FINANCIAL POSITION Unit: THB million ASSETS Dec-17 Mar-18 Change LIABILITIES Dec-17 Mar-18 Change Current Assets Current Liabilities Cash, Cash Equivalents 147 561 414 Bank overdrafts&short-term loans from financial institutions 845 1,554 709 Current Inve
Slide 10: Statement of comprehensive income
Statement of comprehensive income Unit: THB million 2015 2016 2017 2017 1Q2017 1Q2018 Change 1Q2017 1Q2018 %sales YoY %sales %sales Revenue from sales 7,753 9,943 12,904 100.0% 2,683 3,350 24.8% 100.0% 100.0% Costs of goods sold 4,893 6,388 8,840 68.5% 1,805 2,347 30.0% 67.3% 70.1% Gross profits 2,8
Slide 11: 2018 Business Updates
2018 Business Updates 2018 Business Updates 10
Slide 12: China Business Update: (1/6) Energy Drink Market
China Business Update: (1/ 6) Energy Drink Market 11
Slide 13: China Business Update: (2/6)
China Business Update: (2/ 6) World Class Products Now Available in China 12
Slide 14: China Business Update: (3/6) Cans vs Bottles
China Business Update: (3/ 6) Cans vs Bottles Cans Bottles 100% 1.37% 1.40% 3.39% 4.48% 4.66% 6.16% 5.73% 6.20% 6.81% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% ส.ค.-17 ก.ย.-17 ต.ค.-17 พ.ย.-17 ธ.ค.-17 ม.ค.-18 ก.พ.-18 มี.ค.-18 เม.ย.-18 13
Slide 15: China Business Update: (4/6) Creating Distribution Network
China Business Update: (4/ 6) Creating Distribution Network in Key Areas 14
Slide 16: China Business Update: (5/6) Energy Drink Hot Spots
China Business Update: (5/ 6) Energy Drink Hot Spots 15
Slide 17: China Business Update: (6/6) Key Accounts Update
China Business Update: (6/ 6) Key Accounts Update 10,000 Outlets in May Major Petrol Stations 23,000 Outlets in June in Northern China 16
Slide 18: UK Business Update: UK & EFL Partnership
UK Business Update : UK & EFL Partnership THE CARABAO CUP 2017/18 summary AWARENESS & POSITIVITY & ASSOCIATION CONSIDERATION • Brand awareness of • EFL fans feeling more Carabao positive towards Carabao has increased by as a result of the 36% partnership has increased by from 30% to 41% 44% from 16%
Slide 19: UK & EFL Partnership (Con't)
UK Business Update : UK & EFL Partnership (Con’t) World Class Brand Platform value communication platform for CARABAO INTERNATIONAL MEDIA VALUES 2017/18 18 According to EFL data
Slide 20: UK Business Update: 2018 Investment Phase to Create Fans
UK Business Update : 2018 Investment Phase to Create Fans Potential Customers Launch of Mandarin Orange To drive volume sold and expand shelf space 2018 - Trial listed in Jan’18 - In negotiation for more roll-out - On-shelf in Apr’18 c.25% of total stores - On-shelf in May’18 - To be listed in Jul’1
Slide 21: UK Business Update: Nationwide Marketing Activation
UK Business Update : 2018 Investment Phase to Create Fans Nationwide Marketing Activation: To drive new awareness and trial both in-store & OOH 20
Slide 22: Domestic: Business Update
Domestic: Business Update 1 of the 9 broadcasters of FIFA World Cup 2018 Boosting excitement of CARABAO in Thai perfect timing for new product launched New product launch with integrated marketing plans & & #สว ัสดีบอลโลก Timing: 64 Matches, 14 June- 15 July 2018 Broadcasting sponsorship fee: THB 50
Slide 23: Domestic: Business Update (Con't)
Domestic: Business Update (Con’t) Engaging more end-consumers with LINE promotion เลขใต้ฝา ส่งไลน์ได้โชค สว ัสดีบอลโลกลุน ้ โชคกับคาราบาว 22
Slide 24: 2018 Driver
2018 Driver Assets of CBG Carabao Domestic Take advantage as one of the World Cup Broadcasters; Exclusive product launch with integrated marketing campaigns RTD Coffee Strong Brand Quality Product new capacity of OEM supplier at c.13 million cans per month 3rd Party Products Cash Van driven by poten
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Slide 26: Appendix: Corporate Profile
Appendix: Corporate Profile 25
Slide 27: Company overview
Company overview Carabao is the 2nd largest energy drink company in Thailand with strong distribution channel and a successful overseas business, which represents c.40% of the total revenue Business overview Product overview • Founded in 2001 as a partnership between 3 founders one of Categories Pro
Slide 28: Domestic and international business overview
Domestic and international business overview Increasing presence in the international market to drive growth Sales breakdown Established overseas business diversifies dependence on Thailand Domestic revenue by products International revenue by products International revenue by country FY2017 domesti
Slide 29: Founders
FOUNDERS Mr. Sathien Setthasit Miss Nutchamai Mr. Yuenyong Opakul Thanombooncharoen (Add 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 30: 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 31: Shareholding structure
Shareholding structure Ms. Nutchamai Mr. Sathien Setthasit’s Mr. Yuenyong Opakul’s Thanombooncharoen’s Others Free Float Group Group Group 34% 23% 14% 3% 26% Remark: Shareholding portion as of March 8, 2018 Holding Subsidiaries Operating Subsidiaries CARABAO GROUP Registered and Fully Paid-up Capita
Slide 32: Management Team
Management Team INSTRUMENTAL TO BUILDING COMPANY’S SUCCESS VISION World Class Product, World Class Brand Mr. Sathien Setthasit MISSION Chief Executive Officer 1. People: Develop our people with good attitude, willingness to learn, innovation, accountability Co-Founder of the Group in 2001 2. Work Sy
Slide 33: Key Milestones and Developments
Key Milestones and Developments Jul 2016 Oct 2016 Carabao June 2017 Mar 2017 Carabao 3in1 Coffee RTD Coffee Sponsorship of the APC established as a JV was launched EFL Cup; The with SHOWA to produce was launched Carabao Cup. aluminum cans 2016 Carabao 2015 2015 Start establishing Nov 2014 2014 Drink
Slide 34: Manufacturing facilities
Manufacturing facilities State-of-the-art manufacturing facilities to ensure safe and efficient production Energy drink production facilities APG glass bottle manufacturing facility Plant location: 50 KM from central Bangkok • Prod. Cap. of 1,300 million bottles Bottles filling p.a. • 9 production l
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 Strong distribution network covering both modern and traditional channels with unique cash van strategy 1. Traditional Trade – 80%1 A. 3-tiered agent distribution network – 45% Tier 1 ~ 50 agents … End Consumers Carabao Group Tier 2 Tier 2 ~ 500-1,000 sub- agents …
Slide 37: Cash Vans & DCs nationwide
Cash Vans & DCs nationwide 10 – 15 Vans / DC 40 retails / Van / Day 7 DCs 10,000 retails / DC 220,000 retail network 4 DCs 9 DCs W 2 DCs 3 DCs 6 DCs 31 DCs with 331 Vans, covering approx. 220,000 retailers nationwide 36 Note : Base on Information at March 2018
Slide 38: Our Product Portfolio (Energy Drink SKUs)
Our Product Portfolio (Energy Drink SKUs) Carabao Carabao Carabao Carabao Energy Carabao Energy Carabao Carabao Carabao Carabao Carbonated Energy Drink Carbonated Drink Drink (Original Carbonated Carbonated Carbonated Ginseng Edition (The PRC (Mandarin (Original) Export) (Original) (Sugar Free) (Gre
Slide 39: Our Product Portfolio (Non-Energy Drink SKUs)
Our Product Portfolio (Non-Energy Drink SKUs) 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
Slide 40: 3rd Party Products in Cash Vans
3rd Party Products in Cash Vans 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 (10
Slide 41: Statistic Information
Statistic Information Carabao Group PLC. As of 21 May 2018 Closing Price: THB 53.75 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 53,750mn/USD1.7 bn
Slide 42: Investor Relations
Investor Relations Carabao Group Public Co., Ltd. Tel: +66 2636 6111 Ext.882 WORLD CLASS WORLD CLASS Email : IR@carabaogroup.com PRODUCT BRAND www.carabaogroup.com/en 41
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