Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — Q1 FY2015 Earnings Presentation
18 slides from Fraser & Neave's earnings presentation, Feb 12, 2015
Slide 1: First Quarter Financial Highlights
F&N First Quarter FINANCIAL HIGHLIGHTS
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: First Quarter FY2015 Performance Highlights
First Quarter FY2015 Performance Highlights 30% EBIT growth Strong operating performance in the first quarter ended 31 December 2014 (“1Q2015” or “1Q15”) • Beer, Soft Drinks and Dairies posted solid volume growth • Beer and Dairies saw double-digit earnings growth • Soft Drinks earnings adversely af
Slide 4: Key financial metrics: revenue, EBIT, PAT, EPS
Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $655.0 $79.7 ▲ 9.7% ▲ 30.4% Profit after tax (“PAT”) 1 EBIT margin (millions) (%) $60.7 12.16% ▲ 7.5% ▲ 193bps Gearing Earnings per share (basic)1,2 (millions) (cents) $243.3 (net cash) 2.5 ▲ -nm- - 1 Continuing Operations only
Slide 5: Supported by strong volume growth in F&B
Supported by strong volume growth in F&B Revenue by Business Segment 1Q2015 ($) Revenue by Business Segment (%) $655m +9.7% Dairies $597m 46% Publg & Print $655m 13% +10.3% +14.2% Beverages $299m $271m $267m 41% $234m 1Q2015 Revenue by Geography(%) -3.1% Other $91m $89m ASEAN 37% North / - nm - Sout
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue growth supported by higher volumes despite increasing competition Beverages: Soft Drinks Volume Growth 40% (Key Brands) (%) - Volume grew 5% despite weakening consumer sentiment and flooding in Malaysia 11% - F&N and F&N SEASONS NutriWell powered sales -1% 5% 4% - Soft Dr
Slide 7: Revenue | Dairies
Revenue | Dairies Revenue grew 10%; Malaysia and Thailand each recorded strong volume growth Dairies: Malaysia Volume Growth (%) - Volume increased 8%; domestic volume recorded 9% growth 9% 16% - Robust domestic volume growth was supported by effective 12% 8% trade programs and strong marketing and
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Education Publishing continued to diversify and grow its customer base • Growth recorded in key markets of Singapore, Hong Kong and the US • Lower print volume and book distribution adversely affected revenue - 3% $91m $89m 1Q14 1Q15 First quarter ended 31 December
Slide 9: Profit growth supported by higher sales and improved margins
Profit growth supported by higher sales and improved margins 1Q2015 EBIT by Business Segment EBIT by Business Segment (%) ($) $80m +30.4% Others Beverages 20.1% 9% 67% 18.8% 1Q15 1Q14 EBIT Publg $61m Margin & EBIT Margin Print $80m +21.9% -1% $54m Dairies 12.2% 25% $44m 1Q15 10.2% EBIT 1Q14 Margin 6
Slide 10: EBIT | Beverages
EBIT | Beverages Earnings jumped 22% on higher Beer sales Beverages: Beer EBIT - Earnings driven by higher sales and lower input costs - Beer EBIT improved 57% despite higher marketing +57% +22% spend and distribution cost - In constant currency, Beer EBIT surged 59% $54m -27% $44m Beverages: Soft D
Slide 11: EBIT | Dairies
EBIT | Dairies Earnings grew 20% on higher sales in Malaysia, Thailand and Singapore Dairies: Malaysia 1Q2015 EBIT - EBIT growth of 28% +20% +28% +12% +10% - Driven by higher sales, favourable sales mix, improved Others Others $1m $1m production yields and effective promotional and trade Thailand Th
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing • Publishing earnings grew fourfold • Lower earnings from printing and distribution, and the cessation of the use of equity accounting for Fung Choi Media Group adversely affected EBIT EBIT $1.7m ($0.7m) 1Q14 1Q15 First quarter ended 31 December 2014 12 12 February, 2015
Slide 13: Key developments: Extended licenses for Nestle liquid milk brands
Key developments • Extended licenses for Nestle liquid milk brands • 22-year contract • Secured rights to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal Milk and Milkmaid in ASEAN Range of F&N canned milk products First quarter ended 31 December 2014 13 12 February, 2015
Slide 14: Key developments: Dairy plant enhancement
Key developments • Dairy plant enhancement • Thailand: Adding a new filling and packaging line to seize growth opportunities Rojana dairy plant in Thailand First quarter ended 31 December 2014 14 12 February, 2015
Slide 15: Key developments: New market Thailand; innovation and renovation
Key developments • New market: Thailand • Appointed Thai Drinks as the 100PLUS licensee for Thailand. Thai Drinks is a wholly-owned subsidiary of Thai Beverage Plc Limited • Launched 100PLUS in February 2015 • Two power flavours – Citrus and Lemon Lime • Innovation and renovation • COCO Life, 100% c
Slide 16: Summary
Zz < = = =) Ua)
Slide 17: Summary
SUMMARY • Maintained leading positions in key markets • Focus on • Building on our core businesses • Expanding within and beyond our existing markets • Allocating resources to ensure capacities and capabilities • Building on/identifying strategic partnerships and extracting synergistic opportunities
Slide 18: Analyst and media contact: Jennifer Yu
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited