Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2004 Earnings Presentation
15 slides from Fraser & Neave's earnings presentation, 2004
Slide 1: Group Overview
Group Overview Dr Han Cheng Fong FY2004 Full Year Results Briefing
Slide 2: Financial Results
Financial Results $ million FY2004 FY2003 % Change Revenue 3,446.3 3,657.8 -6 PBIT* 582.2 587.1 -1 AP* 266.2 273.0 -2 EPS* (¢) 115.1 103.2 + 12 * before exceptional items
Slide 3: Sales by Activity
Sales by Activity Printing & Investment & Publishing Other Income $441.2m $26.5m 13% Food & 1% Beverage $2.4bn Properties 71% $531.3m 15% 2004 Group Revenue $3.4bn
Slide 4: Sales Growth: F&B
Sales Growth: F&B $ million + 13% $1.6bn 1,600 $1.4bn 1,200 800 + 5% + 10% $377.5m $412.9m $344.3m $393.0m 400 0 Dairies Soft Drinks Breweries 2003 2004 2003 2004 2003 2004 ¾ Increased volumes and market shares due to improving consumer sentiment
Slide 5: Sales Growth: Properties
Sales Growth: Properties $ million $746.2m 800 600 - 53% 400 $349.0m - 1% $183.9m $182.3m 200 0 Investment Property Development Property 2003 2004 2003 2004
Slide 6: Sales Growth: Properties
Sales Growth: Properties ¾ Investment Property revenues maintained by higher rentals at Malls of Centrepoint ¾ Development Property affected by: Securitisation of Compass Point in 2003 Weaker residential sales in Singapore
Slide 7: Profit by Activity
Profit by Activity Printing & Publishing Investment & $28.4m Other Income 5% $87.5m 15% Properties Food & $189.1m Beverage 32% $277.2m 2004 Group PBIT 48% (before exceptional items) $582.2m
Slide 8: Profit Growth: F&B
Profit Growth: F&B $ million 250 + 17% $207.0m 200 $177.4m 150 + 23% 100 - 17% $48.7m 50 $39.5m $18.9m $15.7m 0 Dairies Soft Drinks Breweries 2003 2004 2003 2004 2003 2004
Slide 9: Profit Growth: F&B
Profit Growth: F&B ¾ Soft Drinks benefited from improved margins and effective cost control measures ¾ Dairies affected by start-up losses in Vietnam and higher raw material prices ¾ Strong Breweries performance in Malaysia, PNG, NZ and Indochina
Slide 10: Profit Growth: Properties
Profit Growth: Properties - 48% $ million $145.5m 150 + 2% $112.8m 120 $110.3m 90 $76.3m 60 30 0 Investment Property Development Property 2003 2004 2003 2004
Slide 11: Profit Growth: Properties
Profit Growth: Properties ¾ Investment Property improved due to higher contribution from Malls of Centrepoint and FSR ¾ Development Property profit affected by: one-time gain from securitisation of Compass Point in 2003 weak residential sales in Singapore partly compensated by contributions from
Slide 12: Key Financials
Key Financials FY2004 FY2003 % Change Per $1 Share EPS* (¢) 115.1 103.2 + 12 NAV ($) 12.6 12.3 +2 DPS (net) (¢) 55.0 45.0# + 22 Financial Ratio Gearing@ (x) 0.84 0.75 Dividend cover(x) 2.1 2.3 Interest cover (x) 18.5 13.4 * before exceptional items based on weighted average share capital # excludes
Slide 13: China Investments
China Investments ¾ Kingway Brewery (APB: 21%) leading player in Guangdong province, No. 1 in Shenzhen ¾ China Dairy Group (F&N: 22%) strategic beachhead for expansion into dairies in China largest dairy player in Shaanxi province ¾ Fung Choi (F&N: 24.7%) complementary to existing printing n
Slide 14: Market Outlook
Market Outlook ¾ F&B revenues expected to improve with the favourable consumer sentiments ¾ Singapore residential market recovery on the back of strong GDP growth and better employment prospects ¾ Recovery of the regional economies augurs well for printing and retail businesses
Slide 15: Going Forward
Going Forward ¾ Earnings expected to be maintained. Rising costs will be monitored closely ¾ Continue to broaden and deepen investments overseas, especially in China ¾ Contributions expected from overseas property projects in China and the UK ¾ Publishing & Printing profit expected to improve with n