Slide 1: Third Quarter and Nine Months 2013 Results
Del Monte Pacific Limited Third Quarter and Nine Months 2013 Results 24 October 2013 1
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically
Slide 3: Contents
Contents Executive Summary 3Q 2013 Results Market Updates 9M 2013 Results Outlook US Acquisition Del Monte Philippines and S&W Asia Products 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC THIRD QUARTER HIGHER SALES DRIVEN BY BETTER VOLUME ANNOUNCES PLANS TO BECOME A GLOBAL BRANDED FOODS COMPANY • Third quarter sales up 9% to US$127m driven by branded and non branded businesses • Base net profit of US$8.9m, 7% higher than prior year • Net profit adj
Slide 5: Third Quarter 2013
Third Quarter 2013 3Q 3Q In US$m 2012 Chg (%) Comments (restated*) 2013 Higher sales due to branded and Turnover 116.6 127.0 +8.9 non branded business Gross profit 29.5 31.7 +7.3 Higher volume Impacted by US$1.7m one-off Operating profit 13.2 13.1 -0.5 transaction fees for the US acquisition Finance
Slide 6: 3Q Turnover Analysis
3Q Turnover Analysis 35% Branded 65% Non Branded Branded +4% • Philippines +4% in Peso terms while flat in US$ terms • S&W processed +47% • S&W fresh +31% Non Branded +19% • Improved sales of processed pineapple and tropical mixed fruit products 6
Slide 7: 3Q Sales and Operating Profit Breakdown
3Q Sales and Operating Profit Breakdown Sales Breakdown Operating Profit Breakdown US$127.0m US$13.1m Non-Branded Branded
Slide 8: Philippine Market 3Q Updates
T Philippine Market 3Q Updates • Sales in the Philippines +4% in Peso terms on higher volume • New juice line capacity able to fully serve increasing consumer demand for 100% Pineapple Juice and Mixed Juice Drinks • Partnered with Tipco, the juice leader in Thailand, to distribute Tipco’s 100% Fruit
Slide 9: S&W 3Q Updates
T S&W 3Q Updates • S&W processed sales +47% driven by China, Korea, Middle East and Indonesia • S&W fresh sales +31% driven by Korea, Japan and China • Higher supply of the premium fresh fruit which satisfied the strong fresh demand • Brand building with sampling activities are being executed in key
Slide 10: India 3Q Updates
T India 3Q Updates • Del Monte processed sales +34% • Lower equity loss of US$1.2m from US$1.4m the prior year quarter, on higher sales, better prices, improved product mix and reduced overheads
Slide 11: 3Q Margins
3Q Margins Gross margin Higher sales of lower margin % products and bundled products Margin 30 25.3 24.9 Operating margin Due to one-off transaction fees Net margin 20 Same 11.3 10.3 10 7.1 5.7 0 Gross margin Operating margin Net margin 3Q12 3Q13 11
Slide 12: 3Q Cash Flow Variance Analysis
3Q Cash Flow Variance Analysis Additional Investment Working in 2Q13 Operations Cap Tax Capex FieldFresh Dividend Others 3Q13 -US$162.2m -US$157.9m Net Debt Net Debt -1.0m +6.2m -5.3m -1.9m -8.0m +17.0m -2.7m
Slide 13: Nine Months 2013
Nine Months 2013 9M 9M In US$m 2012 2013 Chg (%) Comments (restated*) Higher sales due to branded and Turnover 300.2 335.4 +11.7 non-branded business Higher volume and better sales Gross profit 74.1 79.8 +7.7 mix Includes one-off transaction fees Operating profit 30.9 31.3 +1.3 of US$1.7m and one-of
Slide 14: 9M Turnover Analysis
9M Turnover Analysis 34% Branded 66% Non Branded Branded +11% • Higher sales in the Philippines and S&W markets Non Branded +14% • Due to better performance of the non supply contract segment which offset declines in the supply contract segment from lower PJC prices 14
Slide 15: 9M Margins
9M Margins Gross margin Higher warehousing and distribution cost % 30 Margin Operating margin Includes one-off 24.7 23.8 transaction fees and dual listing fees Net margin 20 Same 10.3 9.3 10 6.2 5.3 0 Gross margin Operating margin Net margin 9M12 9M13 15
Slide 16: 9M Cash Flow Variance Analysis
9M Cash Flow Variance Analysis Additional Investment Working in 3Q12 Operations Cap Tax Capex FieldFresh Dividend Others 3Q13 -US$151.4m -US$157.9m Net Debt Net Debt -16.6m -10.3m -24.2m -4.5m +69.1m -24.3m +4.3m
Slide 17: Outlook
Outlook • Barring unforeseen circumstances, expects to improve base earnings in 2013 driven by both branded and non branded business – Higher revenue from better volume and sales mix in the Philippines, S&W markets and export markets – Pursue sales of higher margin value-added products – Continues t
Slide 18: US Acquisition
US Acquisition • On 11 October 2013, DMPL announced the proposed acquisition of Del Monte Foods’ consumer food business in the US for US$1.675 billion • This historic transaction allows DMPL greater access to a well-established and profitable branded consumer food business under the Del Monte, S&W,
Slide 19: Del Monte Philippines Products
T Del Monte Philippines Products
Slide 20: S&W Asia Products
T S&W Asia Products