Sappe Public Company Ltd · SET:SAPPE
Sappe Public — Q3 2022 Earnings Presentation
58 slides from Sappe Public's earnings presentation, 2022
Slide 1: Q3 2022 Financial Performance
Q3 2022 Financial Performance SAPPE PUBLIC COMPANY LIMITED
Slide 2: Agenda
1. Financial Performance Q3’2022 Agenda 2. Business Updates 2
Slide 3: Who We Are
WHO WE ARE SAPPE is well-recognized as the leader of innovative drinks and pioneer of functional drinks in Thailand. Sappe has been running business with its determination that “We better people’s lives through our innovative spirit.” The company applies innovations to drive the business creatively
Slide 4: Sappe Performance Consolidation
Sappe Performance Consolidation Sappe PCL SAPPE Europe SAPPE HOLDING (60%) (100%) ALL COCO (51%) Domestic International OEM Danone Sappe (25%) Own Brands Own Brands M-Intelligence (16.2%) WOPE (60%) Distributor Distributor Dormant Company • Sappe HK • Sappe HK Trading • Sappe China Collaborate 4
Slide 5: 1. Financial Performance Q3'2022
1. Financial Performance Q3’2022
Slide 6: Q3'22 Key Financial Highlights
Q3’22 Key Financial Highlights Q3’22 Total Revenue Q3’22 Gross Margin 1,356.6 MB 40.9% +25.2% YoY +0.4% pts YoY Q3’22 SG&A (%) Q3’22 Net Profit 30.2% 27.5% 27.5% 178.1 MB 21.1% -2.7% pts YoY +25.5% YoY 6
Slide 7: All Time High Revenue Breakdown & Net Profit
All Time High Revenue Breakdown & Net Profit Revenue Net Profit Q3’22 • The Revenue Increases +27.9% mainly from IB + 47.6% while DM -15.0% • Net Profit was at 178.1 mb, an increase by +25.5% YoY or +36.1 mb, thanks to the recovery in export market and the improvement of %COGS (-0.5 pts.) 7
Slide 8: Cost of Goods Sold by Quarter
Cost of Goods Sold by Quarter Utilization Rate Q3’22 %COGS was at 59.1% lower than last year at -0.4 pts. However, if we normalize %COGS, the %COGS will lower -2.8 pts. which was from the increasing of utilization rate and factory performance. 8 *Normalize FX & RM/PM was calculated by using FX rate
Slide 9: SG&A
SG&A Selling Expenses Admin Expenses Q3’22 • %Selling expenses decreased (-2.1% YoY) from logistic costs in export markets are starting to drop (which offset with Other Income) • Admin Expenses increased from last year by +17.0% YoY 9
Slide 10: Product Categories
PRODUCT CATEGORIES Functional Functional Healthier RTD Juice Drinks Drinks Powders Snacks & Others No. 1 market share in No. 1 Functional • Juice drinks with inclusion • Beauti Jelly in pouch • Preaw - ready to drink value in TH Coffee volume in TH (Nata de Coco & Aloe Vera) • Zea Max, fish snack 90
Slide 11: Q3'2022 Million Baht
Q3’2022 1,279 >90 COUNTRIES Million Baht TERRITORIES 11
Slide 12: 9M'2022 Million Baht
9M’2022 3,534 >90 COUNTRIES Million Baht TERRITORIES 12
Slide 13: Q3'2022 (YoY) Top Line Growth by Regions
Q3’2022 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Q3’2022 America -15.4% +134.1% ME & 1,279 Million Baht Others +51.5% Asia +38.5% Thailand -15.0% 13
Slide 14: 9M'2022 (YoY) Top Line Growth by Regions
9M’2022 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe 9M’2022 America -17.4% +119.6% ME & 3,534 Million Baht Others +54.7% Asia +64.1% Thailand -13.4% 14
Slide 15: 2. Business Updates
2. Business Updates
Slide 16: International Markets
International Markets
Slide 17: Champion Product
Champion Product • Fruit flavored drink with Nata de coco • Full of extra-large Nata de coco cubes • Variety of choices Naturally Yours with Aloe Vera Cube 17
Slide 18: Overseas Key Countries
Overseas Key Countries
Slide 19: Korea
KOREA 19
Slide 20: Korea Market: Mogu Mogu
KOREA Market Mogu Mogu Hyper Market CVS Health & Beauty No. 1 Fruit Juice Drink in CVS Channel Contribution TT 23.0% Supermarket Department Store Discount Store MT 77.0% 20
Slide 21: Korea – Fruit Juice Category
KOREA – Fruit Juice Category MOGU MOGU : No. 1 Fruit Juice Drink in CVS 21
Slide 22: Korea – Trend Updated
AY 2HRRTEEFEA sou» 26m OFRISRMIEH FE] SADA AGL4 SEES 01712 sticker enthusiast Fol 7 MOGU MOGU adied 30 yea ire ee 30h BEG20m) wisoc @ (Slow)#O|BL197. £4 @JUNG... - 11h tt CARs BROIL IDS 2| AIOLE!D 9] GIL SICH} 327 Wisin BaE> Bt soe a7 $34445 fant mogu mogu! @ av 24,194 thes bangln att Hen bl ine PL
Slide 23: Korea - Marketing Activity
Korea - Marketing Activity LIKE 769K, VIEWS 4.6 M, COMMENT 25K LIKE 73.8M, VIEWS 2.5M, COMMENT 58K _ TXT a 64K VIEWS 68.5K COMMENT 1.4K Continue getting that created and posted acros platforms and from Players s social media W® Favorite + MOGUMOGUxZEPETO Following < Followed by la_fleur86 #mogumogux
Slide 24: Mogu Mogu - Korean's Top Trending
MOGU MOGU - Korean’s Top Trending 24
Slide 25: NPD Mogu Jelly – 2 Flavors
NPD MOGU JELLY — 2 Flavors Launched Q3 2022
Slide 26: Philippines
PHILIPPINES 26
Slide 27: Philippines Market: Mogu Mogu
PHILIPPINES Market Mogu Mogu Available in >90% of MT stores No. 1 Fruit Juice Drink in CVS CVS Supermarket Channel Contribution TT 10.0% Drug Store Online MT 90.0% 27
Slide 28: Philippines – Fruit Juice Category
PHILIPPINES – Fruit Juice Category MOGU MOGU : No. 1 Fruit Juice Drink in CVS 28
Slide 29: Philippines - Marketing Activity
PHILIPPINES - Marketing Activity Drive brand repertoire with activities to build potential Getting big buzz from MOGU FANS AND K-POP Fandom segments as loyal consumers
Slide 30: Philippines - Mogu Mogu Brand Engagement
PHILIPPINES - MOGU MOGU brand engagement 30
Slide 31: Indonesia
\*"s INDONESIA
Slide 32: Indonesia Market: Mogu Mogu
INDONESIA Market Mogu Mogu No. 1 Fruit Juice Drink in Indomaret Channel Contribution TT 19.0% MT 81.0% 32
Slide 33: Indonesia – Fruit Juice Category
INDONESIA – Fruit Juice Category MOGU MOGU : No. 1 Fruit Juice Drink in INDOMARET 33
Slide 34: France
FRANCE 34
Slide 35: France Market Expansion
France Market Expansion Channel Contribution As of June 2022 As of September 2022 TT MT 58.0% 42.0% 35
Slide 36: France - Mogu Mogu in Stores
FRANCE - MOGU MOGU in Stores 36
Slide 37: France - Mogu Mogu in Stores
FRANCE - MOGU MOGU in Stores 37
Slide 38: Domestic Market
Domestic Market 38
Slide 39: Sappe Beauti Shot – Drive awareness and trial
SAPPE BEAUTI SHOT – Drive awareness & trial on various touchpoints with over 7M Reach TIKTOK KOL seeding Review Page MV Tie-in Advertorial Page for 7-11 Promo Oct - Nov
Slide 40: Maxtive Banana Activities
MAXTIVE BANANA ACTIVITIES Maxtive Banana x Thairun Maxtive Banana Event Bangsaen 42 Chonburi Marathon Event Date : Sunday 30th October 2022 Expo Day : 28th-29th October 2022 Running Workshop with โค้ชเหรียง Target : 12,000 runners “Boost up Your Energy Running Booth : 3x2M (40,000 THB) workshop by M
Slide 41: Top 5 Most Popular Thai Website
Top 5 most popular Thai website WEB APP WEB+APP 10 750 200 Million K Million MAU MAU PVs/Month (Monthly Active User) (Monthly Active User) (Pageviews)
Slide 42: Limitless
& eS Oe 154990) MUNN 6.4 NSU (8 WA) 5 usoeuunduout s ju NUGiRL DEKDNUGIRL.COM
Slide 43: Better Scent, Better You
สูดความชอบ สูดสุด BETTER SCENT, BETTER YOU
Slide 44: Thailand
THAILAND ORIGINAL NO SUGAR 0 KCAL 44
Slide 45: Market Share #3
Sales Performance Shared 25% Loss from DSB Market Share #3 In Vitamin Water Category (since October 2021) Source: Nielsen Thailand data as of Sep’22 The first three years were the brand investment period In 2022, we target net profit at brake-even 45
Slide 46: Continually Marketing Investment in Q4'2022
Continually Marketing Investment in Q4’2022
Slide 47: ALL COCO
ALL COCO
Slide 48: Outlook: ALL COCO Q3/22
OUTLOOK : ALLQ3/22 COCO Q3/2022 Sales by BU OUTLOOK : ALL COCO Q3/2022 P&L by Quarter 9M/2022 • Total Revenue from selling goods in Q3/2022 was at 78.5 MB and It had -0.08% growth of Net profit compared with that of Q3/2021
Slide 49: Expansion with NPD in Vegetarian Festival
• Expansion with NPD in Vegetarian Festival
Slide 50: Coming Soon: Seasonal Menu
• COMING SOON....Seasonal Menu The product will be released on November 15th,22 Matcha Chocolate Thai Tea
Slide 51: New JV with Workpoint
New JV with Workpoint WHAT WE POSSESS 51
Slide 52: New JV with Workpoint
New JV with Workpoint ชาระทุนจดทะเบียน (ชาระเต็มจานวน) 50 MB (Sappe 30.0 MB & THB 20.0 MB) Holding Operate 1 October 2022 60% 40% 1 จ้างผลิต • เจ้าของสินค้า 4 • จัดทาแผนการตลาดและประชาสัมพันธ์ ให้บริการ โรงงานผูผ้ ลิต • กาหนดกลยุทธ์การขายและการออก Media & Presenter ในสังกัด กรรมสิทธิ์ FG ผลิตภัณฑ์ M
Slide 53: Target Growth 2022-2026
TARGET GROWTH 2022-2026 REVENUE Y2021 10,000 MB. Revenue from selling goods 3,444 MB 2026F 53
Slide 54: 2023 Outlook
2023 Outlook INTERNATIONAL BUSINESS DOMESTIC MARKET Brand Globalization: Korea First Grow base products Strategic channel Expansion GROWTH >20 NPD (with Seasonal SKUs) Diversify portfolio +25% YOY New Platform Future Growth Future Growth 54
Slide 55: 2023 Outlook: Growth by Region
2023 Outlook GROWTH America Europe +30% +25% YOY +28% ME & Others +25% Asia +22% Thailand +25% 55
Slide 56: Capacity Expansion in 2023
Capacity Expansion in 2023 Target increase Capacity +30% YoY Increase Speed Line +10% Upgrade Production Line +10% Partial OEM +10%
Slide 57: Q&A
Q&A
Slide 58: The Innovative Spirit
The Innovative Spirit WWW.SAPPE.COM