Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2003 Earnings Presentation
19 slides from Del Monte Pacific's earnings presentation, Feb 19, 2004
Slide 1: Del Monte Pacific Limited 2003 Results
Del Monte Pacific Limited 2003 Results 19 February 2004 1
Slide 2: Agenda
Agenda • 4Q 2003 Financials • FY 2003 Financials • Dividend • Outlook for 2004 • Appendix 2
Slide 3: Fourth Quarter 2003
Fourth Quarter 2003 In US$m 4Q 2002 4Q 2003 Change Turnover 62.5 72.8 17% EBITDA 18.0 16.6 8% PBIT 16.4 15.0 9% Net Profit 14.3 13.4 6% EPS (US cents) 1.33 1.25 6% Operating Cash Flow 23.4 35.5 52% Net Cash 12.6 19.2 53% 3
Slide 4: Turnover Variance Analysis
Turnover Variance Analysis in US$m 4Q02 +2.0 4Q03 +2.3 +7.6 -1.6 72.8 62.5 Volume Mix Price Currency 4
Slide 5: Margins Lower
Margins Lower Down due to El Niño-related higher product costs Affected by tighter inventory % Margin management and higher 40 33.9 marketing costs 32.8 26.2 30 22.8 20.6 18.4 20 10 0 Gross Profit PBIT Net Profit 4Q02 4Q03 5
Slide 6: PBIT Variance Analysis
PBIT Variance Analysis in US$m Tighter inventory management and higher marketing costs 4Q02 4Q03 +2.7 -3.3 -0.8 16.4 15.0 PBIT Gross Other Dist. & PBIT Profit Operating Selling Exp. Exp. 6
Slide 7: Market Analysis
Asia Market Analysis Europe/ N America 4Q03 Turnover FY03 Turnover 66% +7% -4% 64% 34% 36% +41% +15% 4Q03 PBIT FY03 PBIT 57% -23% -27% 56% 43% 44% +23% +8% 7
Slide 8: Product Analysis
Processed products Product Analysis Beverages Non-processed 4Q03 Turnover FY03 Turnover 71% +2% 69% +13% 23% 24% 6% 7% +29% +18% +17% -29% 4Q03 PBIT FY03 PBIT -16% 72% -20% 71% 1% 27% 1% 28% +13% n/m +20% -77% 8
Slide 9: Impact of Inventory Provision
Impact of Inventory Provision Net income (US$m) 4Q02 4Q03 6% 3% 20 14.3 14.3 14.8 13.4 15 10 5 0 With inventory Without inventory provision provision 9
Slide 10: Declining Capex
Declining Capex • Capex declined as major capital projects were completed US$m Capex 14.9 Depreciation 16 11.1 12 10.3 7.6 8 6.5 3.7 4.4 5.2 2.9 3.1 3.4 2.3 4 1.3 1.5 0 1999 2000 2001 2002 2003 4Q02 4Q03 10
Slide 11: Cash Flow Variance Analysis
Cash Flow Variance Analysis in US$m Tighter working capital management 3Q03 4Q03 +35.5 Net Cash +19.2 -2.3 -0.5 Net Debt Operation Capex Others -13.5 11
Slide 12: Employer of the Year Award
Employer of the Year Award • Del Monte Philippines, Inc won the prestigious Employer of the Year Award for 2003 • The only company to win 3x in 27 years • Personnel Manager of the Year Award was also given to our VP for Corporate HR and Corporate Affairs, Jaime Ong 12
Slide 13: Full Year 2003
Full Year 2003 In US$m FY02 FY03 Change Turnover 196.4 200.4 2% EBITDA 43.9 39.2 11% PBIT 39.0 33.2 15% Net Profit 35.2 30.2 14% EPS (US cents) 3.28 2.82 14% Dividend Per Share 1.97 1.69 14% (US cents) Operating Cash Flow 26.5 36.9 40% Net Cash 12.6 19.2 53% 13
Slide 14: Dividend
Dividend Dividend Book Closure Payment Date Dividend/ Dividend/ Payout Ratio Date Share Share (US cents) (SG cents) Interim 4 Sep 2003 25 Sep 2003 0.41 0.72 33% of 1H03 Final 6 May 2004 25 May 2004 1.28 2.15* 82% of 2H03 Total 1.69 2.87 60% of FY03 *Based on an indicative exchange rate of S$1.68/US$
Slide 15: Outlook for 2004
Outlook for 2004 • Some residual effects from El Niño • Improved yet still difficult operating environment • Overall, financial performance expected to improve over 2003 15
Slide 16: Appendix
> Appendix 16
Slide 17: Fourth Quarter 2003 (S$)
Fourth Quarter 2003 (S$) In S$m 4Q 2002 4Q 2003 Change Turnover 110.5 125.9 14% EBITDA 31.9 28.7 10% PBIT 29.0 25.9 11% Net Profit 25.2 23.2 8% EPS (SG cents) 2.35 2.16 8% Operating Cash Flow 41.5 61.5 48% Net Cash 22.7 33.5 48% S$: US$ 1.77 1.73 2% 17
Slide 18: Full Year 2003 (S$)
Full Year 2003 (S$) In S$m FY2002 FY2003 Change Turnover 353.5 348.8 1% EBITDA 78.9 68.1 14% PBIT 70.3 57.8 18% Net Profit 63.3 52.5 17% EPS (SG cents) 5.90 4.90 17% Dividend Per Share (SG cents) 3.47 2.87 17% Operating Cash Flow 47.6 64.3 35% Net Cash 22.7 33.5 48% S$: US$ for P&L 1.80 1.74 3% S$:
Slide 19: Share Price Performance
Share Price Performance Base = 100 115 DMPL Share Price Index Outperformed STI 110 105 100 95 Straits Times Index 90 Nov-03 May-03 Aug-03 Sep-03 Dec-03 Jun-03 Feb-03 Feb-04 Jan-03 Jan-04 Mar-03 Apr-03 Oct-03 Jul-03 85 Del Monte Pacific Share Price and Volume Volume (in m shares) Share Price (S$) 1.6