Tingyi (Cayman Islands) Holding Corp. · HKEX:322

Tingyi (Cayman Islands) — Q3 2016 Earnings Presentation

25 slides from Tingyi (Cayman Islands)'s earnings presentation, Nov 28, 2016

  1. Slide 1: Revised Presentation on 2016 Third Quarterly Results (HKEX announcement)

    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in re

  2. Slide 2: Tingyi Holding Corp. 3Q 2016 Results

    Tingyi Holding Corp. 3Q 2016 Results 28 November 2016

  3. Slide 3: Disclaimer

    Disclaimer The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice and no representation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completenes

  4. Slide 4: Contents

    Contents  3Q 2016 review  Financial highlights  Market shares  Distribution network  Production summary ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 3 .

  5. Slide 5: 3Q 2016 – Sales & Profit

    3Q 2016 – Sales & Profit US$ million 3Q2016 3Q2015 Change% Turnover 2,722 2,764 -1.52 Gross Profit 910 920 -1.09 Gross Margin 33.44% 33.30% 0.14ppt. EBITDA 449 408 9.97 Profit 221 188 17.37 Profit attributable to owners 143 144 -1.00 of the Company EPS (US cents) 2.55 2.57 -0.02cents ©2016 Tingyi(Ca

  6. Slide 6: 1-9/2016 – Sales & Profit

    1-9/ 2016 – Sales & Profit US$ million 1-9/2016 1-9/2015 Change% Turnover 6,913 7,634 -9.44 Gross Profit 2,236 2,522 -11.33 Gross Margin 32.35% 33.04% -0.69ppt. EBITDA 936 1,088 -13.91 Profit 312 461 -32.30 Profit attributable to owners 213 342 -37.85 of the Company EPS (US cents) 3.79 6.10 -2.31cen

  7. Slide 7: Turnover by Products

    Turnover by Products US$ million 3Q2016 3Q2015 Change% Instant Noodles 969 1,062 - 8.75 Beverages 1,696 1,638 3.55 Instant Food 35 36 -4.06 Others 22 28 -21.27 Total 2,722 2,764 -1.52 3Q2015 3Q2016 Instant Others Instant Food Others 1% Food 1% 1% 1% Noodles Beverages Noodles 39% 59% Beverages 36% 62

  8. Slide 8: Turnover by Products

    Turnover by Products US$ million 1-9/2016 1-9/2015 Change% Instant Noodles 2,511 2,854 -12.01 Beverages 4,232 4,600 -8.01 Instant Food 98 103 -5.37 Others 72 77 -5.43 Total 6,913 7,634 -9.44 1-9/2015 1-9/2016 Instant Food Others Instant 1% Food Others 1% 1% 2% Noodles 38% Beverages 60% Noodles Bever

  9. Slide 9: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 3Q2016 3Q2015 Change% Bowl 467 502 -6.70 High end Packet 357 433 -17.54 Mid end Packet 128 106 20.27 Snack Noodle & Others 17 21 -22.64 Total 969 1,062 -8.75 3Q2015 3Q2016 Snack Noodle Mid end & Others Mid end Snack Noodle Packet Packet & Others 2% 10% 13

  10. Slide 10: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 1-9/2016 1-9/2015 Change% Bowl 1,221 1,376 - 11.24 High end Packet 801 1,123 - 28.67 Mid end Packet 441 294 50.09 Snack Noodle & Others 48 61 -21.99 Total 2,511 2,854 - 12.01 1-9/2015 1-9/2016 Snack Noodle Snack Noodle Mid end Mid end & Others & Others Pa

  11. Slide 11: Beverage Sales by Products

    Beverage Sales by Products US$ million 3Q2016 3Q2015 Change% Tea 714 665 7.23 Water 337 327 3.06 Juice 224 235 -4.33 Carbonated drinks and Others 421 411 2.49 Total 1,696 1,638 3.55 3Q2015 3Q2016 CSD & Others CSD & Others 25% 25% Tea Tea 41% Juice 42% Juice 13% 14% Water Water 20% 20% ©2016 Tingyi(C

  12. Slide 12: Beverage Sales by Products

    Beverage Sales by Products US$ million 1-9/2016 1-9/2015 Change% Tea 1,832 1,922 -4.68 Water 763 855 -10.76 Juice 558 678 -17.67 Carbonated drinks and Others 1,079 1,145 -5.83 Total 4,232 4,600 -8.01 1-9/2015 1-9/2016 CSD & Others CSD & Others 25% 26% Tea Tea 43% 42% Juice Juice 15% 13% Water Water

  13. Slide 13: Gross Margin by Products

    Gross Margin by Products % 37.02 3Q2015 40 34.47 35.37 33.30 33.44 3Q2016 32.44 35 31.76 30.37 30 25 20 15 10 5 0 Instant Beverages Instant Food Overall Noodles Change (ppt.) -1.39 0.90 4.58 0.14 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 12 .

  14. Slide 14: Gross Margin by Products

    Gross Margin by Products % 1-9/2015 40 35.94 34.64 34.53 1-9/2016 32.96 33.04 32.35 35 30.84 28.85 30 25 20 15 10 5 0 Instant Beverages Instant Food Overall Noodles Change (ppt.) -1.99 -0.11 2.98 -0.69 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 13 .

  15. Slide 15: EBIT by Products

    EBIT by Products US$’000 3Q2016 3Q2015 Change% Instant Noodles 111,153 148,071 -24.93 Beverages 193,176 117,933 63.80 Instant Food -903 -5,683 84.11 Others 3,912 10,084 -61.21 Group EBIT 307,338 270,405 13.66 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 14 .

  16. Slide 16: EBIT by Products

    EBIT by Products US$’000 1-9/2016 1-9/2015 Change% Instant Noodles 181,149 341,172 -46.90 Beverages 296,082 340,527 -13.05 Instant Food -7,424 -16,702 55.55 Others 25,026 18,177 37.68 Group EBIT 494,833 683,174 -27.57 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 15 .

  17. Slide 17: Profit

    Profit US$’000 3Q2016 3Q2015 Change% Instant Noodles 84,287 112,645 -25.17 Beverages 145,713 78,837 84.83 Instant Food -1,172 -5,651 79.26 Others -8,068 2,263 -456.52 Group Profit 220,760 188,094 17.37 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 16 .

  18. Slide 18: Profit

    Profit US$’000 1-9/2016 1-9/2015 Change% Instant Noodles 145,114 265,856 -45.42 Beverages 185,144 215,890 -14.24 Instant Food -7,611 -16,606 54.17 Others -10,297 -3,754 -174.29 Group Profit 312,350 461,386 -32.30 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 17 .

  19. Slide 19: Financial Position

    Financial Position As at 30/09/2016 As at 31/12/2015 *ROA (Annualized) 7.47% 5.51% *ROE (Annualized) 9.80% 8.63% Current Ratio 0.79 0.68 Gearing Ratio 0.11 0.49 A/R Turnover /Days 11.01 9.46 Finished Goods Turnover/Days 9.76 10.87 Cash and cash equivalents US$2.11 billion US$1.024 billion *ROA：EBIT

  20. Slide 20: Material Price

    Material Price RMB/Ton 4000 Flour 12000 Palm Oil 3500 10000 3000 3,340 8000 6,250 2500 6000 2000 4000 PET Resin 8000 Sugar 14000 12000 7000 6,150 10000 6000 8000 6,650 5000 6000 4000 ©2016 Tingyi(Cayman Islands)Holding Corp., All right reserved. 19 .

  21. Slide 21: Instant Noodle Market Share by Value and Volume

    Instant Noodle Market Share-by Volume Instant Noodle Market Share-by Value % 60.0 70.0 % Tingyi Holding Tingyi Holding 60.0 56.3 56.4 57.1 47.7 47.4 55.6 55.6 55.2 50.0 47.2 46.9 46.0 54.4 45.7 45.0 43.9 44.2 51.3 43.5 42.5 56.5 56.5 56.0 57.2 56.4 55.9 55.0 46.3 46.3 46.3 50.0 52.4 44.9 50.0 40.0 4

  22. Slide 22: RTD Tea Market Share by Volume and Value

    RTD Tea Market Share-by Volume RTD Tea Market Share-by Value % % 60.0 Tingyi Holding 56.6 60.0 54.5 54.2 53.6 53.9 53.9 52.5 51.3 Tingyi Holding 51.2 56.0 56.4 54.2 53.7 49.4 50.0 47.6 46.3 52.2 47.8 48.9 47.0 50.0 45.8 45.7 45.2 46.0 43.3 48.3 41.8 43.4 48.5 46.8 45.7 44.4 44.7 40.0 44.0 40.0 Compa

  23. Slide 23: RTD Tea (no milk tea) Market Share by Volume and Value

    RTD Tea (no milk tea) Market Share-by Volume RTD Tea （no milk tea）Market Share-by Value % % 70.0 Tingyi Holding Tingyi Holding 60.0 56.5 60.8 55.9 56.1 56.1 55.7 61.4 61.4 62.4 59.4 61.4 60.4 59.3 53.4 53.3 58.4 53.8 60.0 57.1 51.151.9 52.2 56.5 56.3 50.9 62.3 54.8 60.1 49.5 54.5 60.9 50.0 52.5 52.5

  24. Slide 24: Diluted Juice Drinks and Bottled Water Market Share by Volume

    Diluted Juice Drinks (below39% juice content) Bottle Water Market Share-by Volume Market Share-by Volume % % 30.0 40.0 25.9 33.8 24.1 35.0 25.0 22.7 22.6 31.0 21.2 21.9 Company A 30.0 21.8 21.6 28.4 19.7 30.0 28.3 26.2 22.1 30.5 20.1 27.1 Company A 20.0 21.5 19.0 20.2 19.1 18.6 25.2 26.1 25.2 20.3 2

  25. Slide 25: Nation-Wide Distribution Network and Production Lines

    A）Nation-Wide Distribution Network As at 30/09/2016 As at 30/06/2016 As at 31/12/2015 Sales Offices： 598 600 606 Warehouse： 69 71 73 Wholesaler： 33,552 31,828 30,095 Direct Retailer： 116,324 116,468 116,036 B）Production Lines Instant Noodles 227 227 227 Beverage 476 474 468 Instant Food 16 16 16 ©20

Tingyi (Cayman Islands) Holding — Q3 2016 Earnings Presentation on 6ix