Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — H1 2014 Earnings Presentation
33 slides from Fraser & Neave's earnings presentation, May 9, 2014
Slide 1: Half-Year FY2014 Results
FRASER AND NEAVE, LIMITED Half-Year FY2014 Results
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: 1H2014 performance highlights
1H2014 performance highlights 39% EBIT growth Strong 1H2014 performance – Strong profit growth in challenging environment – Myanmar Beer, 100PLUS, F&N SEASONS and canned milk recorded strong volume growth – Adverse foreign exchange effect impacted profits Half-year ended 31 Mar 2014 3 Fraser and Nea
Slide 4: Group financial highlights
Group financial highlights Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $1,186.0 $147.4 ▲ 4.4% ▲ 39.4% EBIT margin Gearing (%) (millions) 12.4% $875 (net cash) ▲ 312bps ▲ -nm- Earnings per share (basic) Dividend per share (interim) (cents) (cents) 5.1 2.0 (capital reductio
Slide 5: Revenue by Business
Revenue by Business Topline growth supported by strong volume growth in Food & Beverage Revenue 1H2014: $1,186.0m 1H20131 : $1,136.3m +4.4% +5.6% +6.7% 1H2014 1H2013 $540m $506m $474m $449m -4.5% $172m $180m $0m $1m Beverages Dairies Publg & Print Others 1H2014 1H20131 Beverages 40% 39% Dairies 46%
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue growth curbed by weaker Kyat and Ringgit 1H2014 1H20131 Change Volume (‘000 litres) 445 421 +5.7% Revenue $474m $449m +5.6% Beer Volume growth (Key Brands) (%) - Volume jumped 38%, driven by effective marketing and 38% sports sponsorship - MYANMAR BEER recorded double-dig
Slide 7: Revenue | Dairies
Revenue | Dairies Dairies in Malaysia and Thailand recorded double-digit volume growth 1H2014 1H20131 Change Volume (‘000 kg/litres) 298 266 +12.0% Revenue $540m $506m +6.7% Dairies: Malaysia Volume growth (%) - Strong volume growth driven by increased share of on- 18% 20% trade and various brand aw
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Overseas expansion on track – Strong overseas sales partly offset by lower local sales – Exclusive partnership with Oxford University Press; textbook adoption in Chile • Downward price pressure on Printing and lower non-magazine distribution sales – Despite lower pr
Slide 9: EBIT by Business
EBIT by Business Profit growth supported by Food & Beverage EBIT 1H2014: $147.4m 1H20131 : $105.8m +39.4% +20.1% 1H2014 1H2013 $89m +18.7% $74m -31.0% $33m $28m $24m $1m $1m $2m Beverages Dairies Publg & Print Others 1H2014 1H2013 1 Beverages 60% 70% Dairies 23% 27% Publishing & Printing 1% 1% Other
Slide 10: EBIT | Beverages
EBIT | Beverages Earnings jumped 20% on higher sales and improved margins, despite weaker Kyat and Ringgit 1H2014 1H20131 Change Volume (‘000 litres) 445 421 +5.7% Revenue $474m $449m +5.6% EBIT $89m $74m +20.1% Beer EBIT +20% - Earnings driven by higher sales +15% $89m - Higher marketing spend and
Slide 11: EBIT | Dairies
EBIT | Dairies Margins improved on lower input and conversion costs 1H2014 1H20131 Change Volume (‘000 kg/litres) 298 266 +12.0% Revenue $540m $506m +6.7% EBIT $33m $28m +18.7% Dairies: Malaysia EBIT +19% Others +56% - Volume grew 18%, ahead of category from improved market Others -1% -1% $2m $2m ex
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing • Printing profitability improved – Profitability improved on effective cost control – Benefited from better workflow and savings in operating cost due to consolidation of printing operations in Singapore • Negated by lower sales from local Education Publishing and non-m
Slide 13: Maintained a strong financial position and focused on prudent balance sheet management
Maintained a strong financial position and focused on prudent balance sheet management Key Financial Ratios • 1H2014 balance sheet reflects completion of 1H2014 FY20131 distribution in specie of Frasers Centrepoint Total Equity2 $2,703m $8,878m Limited (“FCL”) shares • Capital distribution of $0.42
Slide 14: FY2014 Half-Year Highlights
FY2014 Half-Year Highlights
Slide 15: Strong Chinese New Year activation across all categories
1. Strong Chinese New Year activation across all categories… with favourable sales mix and strong route-to-market strategy
Slide 16: Beverages | Soft Drinks activation
Beverages | Soft Drinks activation 16 Fraser and Neave, Limited 9 May, 2014
Slide 17: Consumer-focused ACTIVATION
2. Consumer-focused ACTIVATION…
Slide 18: Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games!
Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games! 18 Fraser and Neave, Limited 9 May, 2014
Slide 19: Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games!
Beverages | Myanmar Soft Drinks : 100PLUS in SEA Games! 19 Fraser and Neave, Limited 9 May, 2014
Slide 20: Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games!
Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games! 20 Fraser and Neave, Limited 9 May, 2014
Slide 21: Myanmar Strikes Gold!
Beverages | Myanmar Soft Drinks: 100PLUS in SEA Games! Myanmar Strikes Gold! 21 Fraser and Neave, Limited 9 May, 2014
Slide 22: Beverages | Malaysia Soft Drinks: 100PLUS Hydration Campaign
Beverages | Malaysia Soft Drinks: 100PLUS Hydration Campaign Temperature Shopping Malls / Uni / College Mamaks / Café / Sensitive Billboards Car Park Coffee Shop 22 Fraser and Neave, Limited 9 May, 2014
Slide 23: Malaysia Soft Drinks: F&N SEASONS Nutrisoy, breakfast love
Beverages | Malaysia Soft Drinks: F&N SEASONS Nutrisoy, breakfast love Consumer-focused activation… associating F&N SEASONS Nutrisoy with breakfast 23 Fraser and Neave, Limited 9 May, 2014
Slide 24: Dairies | Singapore Dairies: NCP Antioxidant Pack
Dairies | Singapore Dairies: NCP Antioxidant Pack Above-the-line Print Ads: Editorial write-up 24 Fraser and Neave, Limited 9 May, 2014
Slide 25: Consumer-focused INNOVATION
3. Consumer-focused INNOVATION…
Slide 26: Dairies | Singapore Dairies: Launch of F&N FRUIT TREE Fresh Yuzu
Dairies | Singapore Dairies: Launch of F&N FRUIT TREE Fresh Yuzu 9 May, 2014
Slide 27: Dairies | Singapore Ice-Cream: Launch of Premium Ice-Cream
Dairies | Singapore Ice-Cream: Launch of Premium Ice-Cream
Slide 28: Dairies | Singapore Ice-Cream: Launch of Premium Ice-Cream
Dairies | Singapore Ice-Cream: Launch of Premium Ice-Cream
Slide 29: Targeted ACQUISITION
A. Targeted ACQUISITION...
Slide 30: Acquired 70% of Yoke Food Industries for $21m
Acquired 70% of Yoke Food Industries for $21m • A Malaysia-based company that manufactures, markets and distributes canned beverages • Immediate access to YFI’s production capacity in the fast-growing non-carbonated beverages segment • Broaden routes to markets, in particular Indonesia and Indochina
Slide 31: Summary
Summary
Slide 32: Summary
Summary • A strong start to the year • Maintained leading positions in key markets • Focus on – Strengthening our portfolio: Marketing and product innovation, and M&A – Allocating resources: To ensure capacities and capabilities – Building on/identifying strategic partnerships and extracting synergi
Slide 33: Thank you
Thank you Analyst and media contact: Jennifer Yu Head, Investor Relations Tel: (65) 6318 9231 Email: jenniferyu@fngroup.com.sg Fraser and Neave, Limited | Web: fraserandneave.com