Uni-president Enterprises Corp. · TWSE:1216
Uni-president Enterprises — Investor Presentation (August 2008)
27 slides from Uni-president Enterprises's investor presentation, August 2008
Slide 1: Uni-President Enterprises Corp. (UPEC 1216 TT)
Un-President Enterprises Corp. (UPEC 1216 TT) August 2008
Slide 2: Company Background
Company Background • Founded in 1967 • Market capitalization US$4.4bn* • Taiwan’s largest food manufacturer with the leading retail and distribution business in Taiwan. • Strong presence in the beverage and instant noodles product lines in China market. • Targeted-Asian-markets core businesses: Food
Slide 3: Major Entities and Selected Brands
Major Entities Major Entitiesand & Selected Selected Brands Brands • Taiwan Food Vietnam • China Uni-President Enterprises Thailand Corp. • Southeast Asia Indonesia Philippines Retail Trading Investments Financials • PCSC (45.4%) Nan Lien International PIDC(62.5%) President • Presicarre Corp.(40%) C
Slide 4: Core Competencies
Core Competencies 1.Diversification in the single industry : the all-weather F&B company 2.Multi-brand strategy 3.Supply chain vertical integration: from food manufacturing, distribution, to retail businesses.
Slide 5: The Business Model (I)
The Business Model (I) Organization Capability Profit Marginal Brand Maximization Utility Added Value Constantly enhancing the organization capability, marginal utility, and added value to maximize brand value and profitability.
Slide 6: The Business Model (II)
The Business Model (II) Operational OperationalRisk RiskFactors Factors:: 1.1.Price Pricefluctuations fluctuationsin inraw rawmaterials materials 2.2.The Themacro-economic macro-economicgrowth growthcycle cycle 3.3.Consumer Consumerbehaviors behaviors& &preference preference Reaction ReactionPrincip
Slide 7: The Business Model (III)
The Business Model (III) Strategy： One core + four pillars Manufacturing+ Trading&& Trading Manufacturing+ R&D Distribution Distribution R&D Brand Management Retail Strategic Strategic Retail Acquisitions Operation Operation Acquisitions &&Alliances Alliances
Slide 8: Our Visions
Our Visions Vision: The leading Taiwan-based F&B and Retail company with the strong presence in the Asian market. Taiwan leader Great Taiwanleader GreatChina Chinaleader leader Asia Asialeader leader Speed up the presence in the integrated Asian market (including South-eastern Asia, India, and Middl
Slide 9: Market Share in Taiwan
Market Share in Taiwan 2007 Category Market Share Dairy Products: Yogurt Drink 48.0% Fresh Milk 29.8% Flavored Milk 47.5% Non-carbonated RTD Tea 46.7% Drinks: Juice 16.5% 47.4% Instant Noodles • Successfully target the diverse consumer groups through the multi-brand strategy • Competitive R&D team a
Slide 10: Taiwan Food Sales Break-down
Taiwan Food Sales Break-down NT$millions 50,000 YOY=7.4% 15,000 46,026 YOY=7.4% 42,845 YOY=15.3% 40,252 6% 12,247 40,000 7% 9% 12,000 9% 10,615 10% 10% 10% 30,000 9,000 10% 31.5% 35% 20,000 6,000 42% 37% 10,000 42.5% 40% 3,000 37% 33% - - 2005 2006 2007 2007Q1 2008Q1 Dairy and Beverage Group Provisi
Slide 11: UPEC Operation Result (I)
UPEC Operation Result (I) • Result has been improving through the restructuring plan led by the UPEC new management team. 25.00% 23.27% 25.00% 22.65% 22.27% 22.09% 20.00% 20.06% 20.00% 20.55% 18.22% 15.00% 15.00% 10.00% 8.00% 10.00% 6.26% 4.91% 5.56% 5.00% 5.00% 4.85% 3.19% 3.71% 3.60% 2.34% -0.28%
Slide 12: UPEC Operation Result (II)
UPEC Operation Result (II) NT$millions 2006 2007 2008 Q1 Amount % Amount % Amount % Consolidated Sales 257,667 288,592 73,360 Parent Sales 42,845 100 46,026 100 12,247 100 Gross Margin 9,971 23.3 10,165 22.1 2,517 20.6 Operating Income 1,588 3.7 1,659 3.6 594 4.8 Pre Tax Net Income 3,739 8.7 11,022
Slide 13: UPEC Operation Result (III)
UPEC Operation Result (III) • 2007~2008 Gain on disposal of non-core investments (Non-operating Income and Gains) (NT$millions) Profit realized* 2007 Q1 Divested Accuray (code: ARAY) 2,000 6mn shares through IPO in Nasdaq 2007 Q2 Divested Allianz President Life Insurance 200 A JV with Allianz 2007 D
Slide 14: Key Investments in Taiwan Food Industry
Key Investments in Taiwan Food Industry • Acquired 31% holdings in 2004 Kuang Chuan • Taiwan’s 3rd largest dairy products manufacturer with around 27% market share in fresh and flavored milk. • One of Taiwan’s leading beverage manufacturers • Operates the 3rd largest Taiwan-based convenience store c
Slide 15: Leading Retail Business in Taiwan (I)
Leading Retail Business in Taiwan (I) President Chain Store Corp. (UPEC owned 45.4% ) • The largest Taiwan-based convenience store chains under the Taiwan area permanent licensing agreement with 7-Eleven, with various retail and distribution businesses in Asia. • Listed on Taiwan Stock Exchange with
Slide 16: Leading Retail Business in Taiwan (II)
Leading Retail Business in Taiwan (II) President Chain Store Corp.(UPEC owned 45.4% ) • Strengthened the dominant position after Niko Mart Chain exited the market in 2007 • Operated the total number of 4,770 “7-Eleven” convenience chain stores in Taiwan as of March 31th, 2008. • Signed the Shanghai
Slide 17: Leading Retail Business in Taiwan (III)
Leading Retail Business in Taiwan (III) President Coffee Corp. (UP Group owned 50%) • 50% Joint Venture with the U.S based Starbucks Coffee • Licensing Agreement with Starbucks Coffee to operates in Taiwan and in Shanghai, Jiangsu, and Zhejiang areas in China. US$mn Sales Number of Stores 120 Taiwan
Slide 18: Leading Retail Business in Taiwan (IV)
Leading Retail Business in Taiwan (IV) President Drug Store • Founded in 1995, PCSC 100% holdings • Retailer of well-known cosmetics, medicine and sundries • Operated the total number of 262 stores in Taiwan and 14 stores in China as of March 31th, 2008. US$mn 300 257 250 200 159 Sales 150 Stores 10
Slide 19: Leading Retail Business in Taiwan (V)
Leading Retail Business in Taiwan (V) Other Main Retail and Distribution Businesses： Life Style Restaurants Distribution MUJI Mister Donut Retail Support International Number of Stores.: 11 UP group owned: 51% Number of Stores:39 UP group owned: 50% UP group owned: 45% Cold Stone Creamery Uni-Presid
Slide 20: Trading Business in Taiwan
Trading Business in Taiwan Nanlien International Corp. (UPEC owned 100% ) • Founded in 1979, operated the import,distributing, and agent businesses, built the comprehensive distribution network in Taiwan, and starts to open sales force offices in China. • The well-known, in-house marketing and sales
Slide 21: Food Business in China
Food Business in China Uni-President China Holdings Ltd. (UPEC owned 73.5% ) • One of the leading beverage and instant noodles manufacturers in China, commenced operations in 1992, lPO on Dec 17th, 2007 on Hong Kong Stock Exchange with market capitalization US$1.43bn* • Strong brand recognition and
Slide 22: UPCH Presence
UPCH Presence • With 13 production plants, 53 production lines in Beverage and 50 production lines in instant noodles*. • 530 sales offices and over 1,000,000 distribution points distributing over 300 different products.* Harbin Xinjiang Shenyang Beijing Headquarter Zhengzhou Beverages Shanghai Chen
Slide 23: UPCH Sales Break-down
UPCH Sales Break-down RMB$mn 10,000 2005 – 2007 8,000 CAGR= 15.1% YOY growth 28.2% =10.5 % 6,000 4,000 YOY growth 2,000 70.9% =9.38 % - 2005 2006 2007 Other Business 23 55 68 Instant noodles 2,291 2,212 2,445 Beverage 4,224 5,617 6,144 Total Sales 6,538 7,884 8,657
Slide 24: UPCH Operation Result
UPCH Operation Result Net Income： RMB$mn 2006 ~ 2007 450 YOY = 190 % 424 300 254 Net Income Net Margin 146 150 4.9% 68 3.9% 1.9% 0 2005 2006 2007 2008 Q1
Slide 25: Strategic Alliances/Investments in China
Strategic Alliances/Investments in China Partnered with the leading china domestic beverage players as well as the international ones ： • To build up the distribution channels • To gain production capacity • To diversify industry exposure • To expand production selection • To secure the sourcing of
Slide 26: Other Food Business in China
Other Food Business in China Provision business • Under several JVs in soybean crushing, margarine, seasoning, animal feeds, etc. RMB$mn Provision Sales* 6,000 4,000 2,000 - 2004 2005 2006 2007 * By internal report
Slide 27: Food Business in Southeast Asia
Food Business in Southeast Asia Uni-President Thailand Uni-President Vietnam (owned 100% ) (owned 100% ) Aquatic feeds Beverages Instant noodles Uni-President Indonesia (owned 49% ) Uni-President The Philippines (owned 100% ) Instant noodles Instant noodles Beverage Food Sales in South-eastern Asia*
Uni-President Enterprises — Investor Presentation (August 2008) on 6ix