Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — 9M2014 Earnings Presentation
20 slides from Fraser & Neave's earnings presentation, Aug 8, 2014
Slide 1: 9M2014 Results Presentation
SO Z0 7 PIN ANI@VAE Fle rlL le rls 08 August 20a gee FRASER AND NEAVE, LIMITED,
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: 9M2014 Performance Highlights
9M2014 Performance Highlights 35% EBIT growth Strong performance in the nine months to June 2014 (“9M2014”) • Strong profit growth in challenging environment • Myanmar Beer, 100PLUS, F&N SEASONS and canned milk recorded strong volume growth • Adverse foreign exchange effect impacted profits 3 Nine m
Slide 4: Key financial metrics: revenue, EBIT, EPS, dividend
Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $1,808.1 $226.9 ▲ 4.9% ▲ 35.2% EBIT margin Gearing (%) (millions) 12.5% $339 (net cash) ▲ 282bps ▲ -nm- Earnings per share (basic)1,2 Dividend per share (interim)3 (cents) (cents) 8.2 2.0 (capital reduction of $0.42 in Apr 2014)
Slide 5: Supported by strong volume growth in Food & Beverage
Supported by strong volume growth in Food & Beverage Revenue by Business Segment 9M14 Revenue by Business Segment ($) (%) $1,808m $1,724m +4.9% Dairies 45% Publg & $820m +5.4% $778m Print $732m +8.2% $676m 14% $1,808m $267m $256m -4.2% Beverages 41% $2m $0m 9M13 9M14 9M13 9M14 BEVERAGES DAIRIES PUBL
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue growth supported by higher volumes, moderated by weaker Kyat and Ringgit Beverages: Beer Volume Growth (Key Brands) (%) 38% - Volume grew 38% driven by effective marketing and sports sponsorship and enhanced route-to-market excellence 4% 4% - MYANMAR BEER enjoyed double-d
Slide 7: Revenue | Dairies
Revenue | Dairies Revenue grew 8%1; Malaysia and Thailand each recorded double-digit revenue growth2 Dairies: Malaysia Volume Growth (%) - Volume increased 18%, ahead of category - Robust domestic volume growth was supported by effective 18% 18% trade programs and strong sales execution, despite wea
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Publishing continued to diversify and grow its customer base • Strong overseas sales partly offset by lower local sales • Exclusive partnership with Oxford University Press; textbook adoption in Chile • Printing continued to face pricing pressure • Lower demand from
Slide 9: Profit growth supported by improved margins
Profit growth support by improved margins EBIT by Business Segment 9M14 EBIT by Business Segment ($) (%) $227m 19.1% +35.2% 9M14 EBIT Margin $168m 16.1% 9M13 EBIT Margin $140m +28.1% 12.5% Beverages 9M14 Others 62% EBIT $109m Margin 16% 9.7% 9M13 EBIT Margin $227m 5.7% 5.8% Publg & $48m Print $45m +
Slide 10: EBIT | Beverages
EBIT | Beverages Earnings jumped 28% on higher sales and improved margins, despite weaker Kyat and Ringgit Beverages: Beer EBIT - Earnings driven by higher sales and favourable mix +28% +33% - Beer EBIT improved 33% despite higher marketing +20% $140m spend and distribution cost as well as weaker Ky
Slide 11: EBIT | Dairies
EBIT | Dairies EBIT grew 11%1, supported by Malaysia; pricing control stemmed Thailand’s growth Dairies: Malaysia EBIT - EBIT growth of 61% +61% +7% - Driven by improved production yields, lower input costs, Others $5m -13% Others $3m -39% better bad debts recovery and non-recurring expenses in Thai
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing • Printing profitability improved • 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 lower sales from local Education Publishing and non-m
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 9M2014 FY20131 Limited shares Total Equity2 $2,043m $8,878m • Capital distribution of $0.42 per share ($607 Tot
Slide 14: Summary
Z < = = =) Ca)
Slide 15: Summary
SUMMARY • A strong start to the year • 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 synergi
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: Unaudited Pro Forma Profit Statement for the Year Ended 30 September 2013
UNAUDITED PRO FORMA PROFIT STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2013 11 May, 2017
Slide 18: Unaudited Pro Forma Profit Statement for the Year Ended 30 September 2013 (Cont'd)
UNAUDITED PRO FORMA PROFIT STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2013 (CONT’D)
Slide 19: Unaudited Pro Forma Balance Sheet for the Year Ended 30 September 2013
UNAUDITED PRO FORMA BALANCE SHEET FOR THE YEAR ENDED 30 SEPTEMBER 2013 11 May, 2017
Slide 20: Unaudited Pro Forma Balance Sheet for the Year Ended 30 September 2013 (Cont'd)
UNAUDITED PRO FORMA BALANCE SHEET FOR THE YEAR ENDED 30 SEPTEMBER 2013 (CONT’D)