Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2006 Earnings Presentation
16 slides from Fraser & Neave's earnings presentation, 2006
Slide 1: Review by Operations: Publishing & Printing
Review by Operations Publishing & Printing Dato’ Ng Jui Sia
Slide 2: Financial Overview
TPL Financial Overview $ million FY2006 FY2005 Change Revenue 490.7 480.6 # +2.1% PBIT 22.4 35.5 -36.9% PAT* 15.9 25.4 -37.4% * before exceptional items # re-stated to include share of revenue of joint venture Slide 2
Slide 3: Financial Overview: Revenue
TPL Financial Overview Consolidated revenue up by $10.1m (2.1%) to $490.7m due to: Full year effect of acquisition in educational publishing Higher revenue from printing plants in S'pore and M’sia Partly offset by divestment of non- performing businesses and phasing out of partworks publishing Slide
Slide 4: Financial Overview: PBIT
TPL Financial Overview Despite higher revenue, PBIT fell by $13.1m (36.9%) to $22.4m due to: Margin erosion at the Printing Group due to rising material cost Negative margins from declining product segments Exceptional gain of $2.2m realised from sale of non-core assets Slide 4
Slide 5: Operational Review: Printing
TPL Operational Review Printing Despite higher throughput, net revenue rose marginally against backdrop of intense price competition due to international publishers sourcing print services out of PRC PBIT fell as a result of: Intense price competition Rising materials/energy costs Change of product
Slide 6: Operational Review: Printing (cont'd)
TPL Operational Review Printing (cont'd) Drop partly mitigated by higher contribution from associate, Fung Choi Media which ventured successfully into magazines and outdoor media Slide 6
Slide 7: Operational Review: Publishing
TPL Operational Review Publishing Revenue up on: Acquisition of Panpac Education Full-year contribution from Educational Technologies Group New directories from business information group PBIT dipped as a result of phasing out of partwork publishing in UK Slide 7
Slide 8: Operational Review: Retail & Distribution
TPL Operational Review Retail & Distribution Revenue remained flat Gains at magazines and lifestyle products distribution offset by drop in books distribution Distribution in Japan plagued by declining student cohort, budget cuts by institutions of higher learning and discounting to counter on-line
Slide 9: Market Outlook: Printing
TPL Market Outlook Printing Increase in paper prices remains challenging to the bottom-line Technology drives the printing business and Asia is a competitive production base for books Digital media affecting news-related periodicals thus affecting print-runs Slide 9
Slide 10: Market Outlook: Publishing
TPL Market Outlook Publishing English Language Teaching (ELT) is the 2nd fastest growing segment Potential of Singapore Maths in the international education market Digital media an important supplement to print product Slide 10
Slide 11: Market Outlook: Retail & Distribution
TPL Market Outlook Retail & Distribution On-line book retailers eg. Amazon gaining market share Increase in digital book download for backlist Slide 11
Slide 12: Going Forward: Printing
TPL Going Forward Printing Increase customer base and diversification (including packaging) for printing plants Implement plant best practice & processes, excellent in-market executions Slide 12
Slide 13: Going Forward: Publishing
TPL Going Forward Publishing Invest in digital media to supplement current print product offerings Education publishing will continue to be a strong player in the local & international market Export China content to the world Slide 13
Slide 14: Going Forward: Retail
TPL Going Forward Retail Repositioning of Times The Bookshop Launch of kiosks for foreign magazines in S'pore and M’sia Slide 14
Slide 15: Going Forward: Distribution
TPL Going Forward Distribution Pansing will launch its new brand identity to consolidate its position as a books and magazines distribution group in Asia New publishers representation in S'pore, M’sia, Thailand & Indonesia China as a book sourcing centre for export Slide 15
Slide 16: Thank You
Thank You