Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — FY2022 Earnings Presentation
51 slides from Fraser & Neave Holdings Bhd's earnings presentation, Nov 9, 2022
Slide 1: 1H FY2022 Financial Results Briefing
FRASER&NEAVEHOLDINGSBHD 1HFY2022 FINANCIALRESULTSBRIEFING
Slide 2: FY2022 F&NHB Group Financial Performance
FY2022 F&NHB GROUP FINANCIAL PERFORMANCE 2
Slide 3: F&NHB Records Higher Revenue for FY2022
” F&NHB Records Higher Revenue for FY2022 The first half of the year was tough due to rising commodity prices and the impact of the floods on our Shah Alam operations. While our overall bottom-line was impacted, it has been greatly mitigated by the effective strategies we had put in place to manage
Slide 4: F&B Malaysia
F&B Malaysia − Strong double digit growth in revenue and profits driven by economic recovery, higher sales, improved margins and operational savings from completed projects. − First full-year contribution from Food Pillar. FY2022 v FY2021 • Revenue +13.5%: • Out-of-home (OOH) consumption rose progre
Slide 5: F&B Thailand
F&B Thailand − Recovery in OOH channels − New product innovations − Sustained growth through effective promotions and loyalty program +25.7% (THB) − Launched F&N Nom Aroi – e-Commerce platform − Capex completion FY2022 v FY2021 • Revenue +2.7% (+7.6% in Thai Baht): • Recovery in OOH channels and pro
Slide 6: Despite lower Export revenue and higher COGS, margins improved through price increase
Despite lower Export revenue and higher COGS, margins improved through price increase • Price increase impacted demand in price-sensitive regions • Challenges faced: Shipping disruption/delays, limited vessels, higher freight costs, strict lockdown in Greater China CONTRIBUTION OF EXPORT REVENUE TO
Slide 7: Balance sheet and final dividend
Final dividend Maintained at 33 sen/share (2021: 33 sen/share) 30 Sept 30 Sep • Directors recommend a final single tier Change 2022 2021 dividend of 33.0 sen per share for approval by shareholders at the Total equity 1 2,982.5 2,819.0 5.8% forthcoming Annual General Meeting. (RM'mil) Total assets •
Slide 8: Second Half Highlights
SECOND HALF HIGHLIGHTS 8
Slide 9: Our New Products in FY2022
OUR NEW PRODUCTS IN FY2022 Innovative New Cooking food packaging condiments products format Healthier options Great application for cooking, beverages & desserts 9
Slide 10: 100PLUS World Hydration Day
100PLUS WORLD HYDRATION DAY A fun-filled carnival to spread awareness on the importance of stay hydrated Hydrating > 100,000 Malaysians in pursuit of their active lifestyle 10
Slide 11: Brand Campaigns to Drive Sales in Malaysia
BRAND CAMPAIGNS TO DRIVE SALES IN MALAYSIA 11
Slide 12: Brand Campaigns to Drive Sales in Thailand
BRAND CAMPAIGNS TO DRIVE SALES IN THAILAND 12
Slide 13: Unveiling Nona's Brand Restage
UNVEILING NONA’S BRAND RESTAGE A more cosmopolitan Malay look and feel 13 13
Slide 14: Introducing F&N Nom Aroi
INTRODUCING F&N NOM AROI Our Online Store for Thailand Market Official launch in May 2022 14 14
Slide 15: Expanding the Reach in Cambodia & Laos
FRASER & NEAVE HOLDINGS BHD EXPANDING THE REACH IN CAMBODIA & LAOS • Tuk-tuk Sales Team • Hawkers’ decoration 15 15
Slide 16: Annual award for employees' children
FRASER & NEAVE HOLDINGS BHD Annual award to motivate employees’ children who excel in academic & co-curricular activities 20th edition in 2022 68 recipients (SPM & Tertiary) RM 218,000 in cash reward 16
Slide 17: External Engagements
FRASER & NEAVE HOLDINGS BHD EXTERNAL ENGAGEMENTS Strengthen Halal Leadership & Expand Global Footprint 17
Slide 18: Our Latest Awards & Recognition
FRASER & NEAVE HOLDINGS BHD OUR LATEST AWARDS & RECOGNITION BRONZE AWARD FOR EXCELLENCE BEST HALAL EXCELLENCE IN ESTABLISHMENT ON ACHIEVEMENT HR COMMUNICATION LABOUR RELATION & AWARD STRATEGY WELFARE 2022 FRASER & NEAVE HOLDINGS FRASER & NEAVE HOLDINGS F&N DAIRIES THAILAND BHD BHD GOLD WINNER IN BRO
Slide 19: FTSE4Good Bursa Malaysia Index constituent and ESG rating
FRASER & NEAVE HOLDINGS BHD A Proud Constituent of FTSEGOOD BURSA MALAYSIA INDEX (4th consecutive year) FTSEGOOD BURSA MALAYSIA SHARIAH INDEX (2nd consecutive year) Improved overall ESG Rating 4.4 out of 5.0 (2021: 4.1) Improved Percentile Rank 19 97 out of 100 (2021: 89) 19
Slide 20: Investing for the Future
INVESTING FOR THE FUTURE 20
Slide 21: Solar Photovoltaic (PV) System
Solar Photovoltaic (PV) System 3 plants in Malaysia (Shah Alam, Pulau Indah, Bentong) Generating renewable energy progressively since August 2022 Pulau Indah Manufacturing Plant Shah Alam Manufacturing Plant Bentong Manufacturing Plant • Part of RM30 mil commitment over two years into renewable ener
Slide 22: Production Plant for Drinking Water & Warehouse
Production Plant for Drinking Water & Warehouse Kota Kinabalu Industrial Park, Malaysia Building and installation completed, commercial run in Q3, FY2022 KKIP Manufacturing Plant • The investment signals our entry into drinking water business in Sabah • Cost savings by in-sourcing of warehousing nee
Slide 23: Integrated Warehouse
Integrated Warehouse Shah Alam Plant, Malaysia Partial utilisation of ASRS Warehouse, certain spare parts to replace damaged machines was delayed Target completion: Q2 FY2023 Racking Stacker Crane RGV • Integrated warehouse building with Automatic Storage & Retrieval System (ASRS) with capacity to s
Slide 24: Plant-Based Beverages Capability in Thailand
Plant-Based Beverages Capability in Thailand Wangmuang, Thailand Completed “A strategic shift for F&NHB to reduce reliance on condensed milk and enable us to grow our brand in the liquid milk segment” SARABURI Located in Wangmuang District, Saraburi, the RM128 million investment (inclusive of land)
Slide 25: Plant-Based Beverages Capability in Thailand
Plant-Based Beverages Capability in Thailand Wangmuang, Thailand FNHB BOD officiating the launch of UHT and Chilled Plant in Wang Muang Solar rooftop 1MWP has been in use since 18 Feb 2022, while first commercial production from the plant is June 2022. Achieved production of 1 million packs of UHT E
Slide 26: Outlook
Outlook 26
Slide 27: Outlook
Outlook • Encouraging momentum of recovery in economic activity and tourism in Malaysia and Thailand, • To continue to drive sales for the coming festive seasons. • Some commodity prices began to stabilise - Prices of tin plate/cans, milk and palm oil are expected to stay elevated into 2023. • Risin
Slide 28: Existing Core Businesses in Beverages & Dairies
F&NHB’s Existing Core Businesses Are In Beverages & Dairies Exports F&B Malaysia F&B Thailand 28
Slide 29: Expanding Into New Categories to Achieve PASSION2025 Goals
Expanding Into New Categories To Achieve PASSION2025 Goals We acquired Sri Nona in 2021 in support of Company’s growth aspiration Sri Nona Companies Exports F&B Malaysia F&B Thailand 29
Slide 30: Expanding Into New Categories & New Capabilities
For Long-Term Sustainability, We Are Expanding Into New Categories & New Capabilities Halal Hub will remain essential to F&NHB, growth to be propelled by: Agriculture & • Dairy Farming Dairy Farming Cocoaland • Food Pillar Sri Nona Companies Exports F&B Malaysia F&B Thailand 30
Slide 31: Expanding Into New Categories With Cocoaland
CCL Expanding Into New Categories With Cocoaland 31 31
Slide 32: What Does Cocoaland Bring To The Table?
What Does Cocoaland Bring To The Table? • Acquisition of 72.38% interest in Cocoaland for RM489.2 million, was completed on 4 November 2022 • Cocoaland is today a wholly-owned subsidiary of the F&NHB Group • The acquisition brings a lot of synergies to the Group, and here’s why… 1 Expansion of Halal
Slide 33: Huge Potential in Chocolate & Snacks Category
Huge Potential In Chocolate & Snacks Category With US$1bil Opportunities in Malaysia Cocoaland only has low single digit % market shares in all categories except sugar confectionery Value (US$mil) 1,000 34% 29% (5YCAGR +1.1%) (5YCAGR +4.8%) 51% Biscuits + Savoury Snacks SAVOURY SNACKS & CHOCOLATE Co
Slide 34: Building New Capabilities with Integrated Dairy Farm
Building New Capabilities with Integrated Dairy Farm 34 34
Slide 35: Dairy farm land location in Gemas, Tampin
Located At Mukim Gemas, Tampin District In NS, This 6,737 Acres Land Is Situated Nearer To Our Pulau Indah Plant Ladang Permai Damai is situated nearer to F&N C. Ladang Rokan Dairies plant in Pulau 2,404 acres Indah: • This Gemas land is located 207km from F&N Dairies plant. B. Ladang A. Ladang 3
Slide 36: Integrated Dairy Farm: Sustainable Farming and Circular Economy Model
Integrated Dairy Farm: Sustainable Farming and Circular Economy Model To Support National Food Security Agenda In Dairy & Beef 1 Herd Management 2 Lactating Cow Barns 3 Milking Parlour 3 Energy- 6 Biodigester 7 Slurry Storage 8 Silo Bunker efficient Cow Sensors Dairy Equipment Freestall Barn 4 Hospi
Slide 37: Key Enabler #1: Investment in Land & Agronomical Mechanisation
Key Enabler #1: Investment in Land & Agronomical Mechanisation – Essential To Produce Quality Crop At Lower Cost For The Dairy • Growing crops on land ease cost of feed and could include supply from surrounding farmers. • Grass, corns etc. are planted using fully mechanised planting equipment to red
Slide 38: Key Enabler #2: Dairy Technological Setup
Key Enabler #2: Dairy Technological Setup Essential for Total Cow Comfort 1 | Tunnel Ventilator System to reduce heat in barns and circulate out odor / gas emission from 1 | Confinement Dairy System & manure. Freestall barn Freestall Barns System 2 | Milking Processing Technology 3 | Energy Efficien
Slide 39: Key Enabler #3: Investment in Sustainable Farming
Key Enabler #3: Investment in Sustainable Farming SUSTAINABLE FARMING with Biodigester System and Solar Power 39
Slide 40: Key Milestone of Wholesome – First Milking Expected in Dec 2024
Key Milestone of Wholesome 2 – First Milking Expected in Dec 2024 Land Acquisition Completed 2022 2023 2024 Dec 2024 Plan Finalisation Commencement 1st Crops First and Approvals of Site Preparation Planted Milking • Land acquisition was completed in 11 October 2022 for RM215.6m, financed through a m
Slide 41: Our Aspirations For The Exciting Future of F&NHB
Our Aspirations For The Exciting Future of F&NHB – Core + New Growth Pillars In Support Of Long-Term Sustainability F&B Exports F&B Thailand Malaysia F&B F&B Malaysia Thailand Halal Food Agriculture & Dairy Farming F&B Malaysia Exports Halal F&B Food Thailand 10 Years Ago Today Future 41
Slide 42: What's Coming Next? A Sneak Preview
What’s Coming Next? “A SNEAK PREVIEW” 42 42
Slide 43: Recharge with 100PLUS and win amazing prizes
Recharge with 100PLUS and win amazing prizes! 43 43
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Slide 45: Nona Dapur Tempur
NONA DAPUR TEMPUR Reality Cooking Competition in collaboration with Media Prima TV9 45
Slide 46: 4) |
4) |
Slide 47: Get ready with the refreshed look of our CSD
GET READY with the refreshed look of our CSD! 47
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Slide 49: Introducing the new Carnation Evaporated Creamer in UHT format
Introducing the new Carnation Evaporated Creamer 49 for Cooking & Bakery in UHT format
Slide 50: | Gmation|
| Gmation| A — —_s MASIUSUONBASAMAOUMLAGMS =| thee av ye dato ean
Slide 51: Thank You
Fraser & Neave Holdings — FY2022 Earnings Presentation on 6ix