Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2016 Earnings Presentation
31 slides from Fraser & Neave's earnings presentation, November 2016
Slide 1: Full Year Financial Highlights FY2015/16
GN FRASER & NEAVE HOLDINGS BHD FY2015/16 Full Year Financial Highlights 34 November 2016
Slide 2: Full year highlights
Revenue grew 1.5% despite the absence of agency products terminated in Oct 2015. Operating profit grew 30.5%, supported by favourable product mix, commodity prices gain and manufacturing efficiencies. F&B Thailand continued its growth momentum, aided by continuing strong branding initiatives a
Slide 3: Revenue by Business Segment
Revenue Revenue by Business Segment (RM’000) 1.5% F&B Malaysia : F&B Thailand (%) F&B 4,167,567 4,107,606 Thailand 39.3% -2.6% 2,594,108 2,527,153 8.5% F&B 1,639,233 Malaysia 1,511,476 FY 2016 60.7% F&B nm Thailand nm 36.8% 1,329 712 693 469 F&B Malaysia F&B Thailand Property Others Total F&B Malays
Slide 4: Operating Profit by Business Segment
Operating Profit Operating Profit by Business Segment (RM’000) F&B Malaysia: F&B Thailand (%) 30.5% F&B Thailand 433,374 47.7% 331,988 -3.3% 79.7% F&B 226,329 218,765 199,531 Malaysia 52.3% -139.8% FY 2016 111,061 F&B nm 39,558 Thailand (15,735) 32.9% (5,626) (2) F&B Malaysia F&B Thailand Property O
Slide 5: Food & Beverages Malaysia
FRASER & NEAVE HOLDINGS BHD 01 Food & Beverages Malaysia (“F&B Malaysia”)
Slide 6: F&B Malaysia Revenue and Operating Profit
Revenue Revenue decreased marginally by 2.6% mainly due to the (RM’000) absence of contribution from Red Bull. 2,594,108 2,527,153 -2.6% Excluding Red Bull contribution, revenue grew by 5.9%. Well executed consumer-driven and trade marketing programs especially during festivities, drove year-o
Slide 7: Food & Beverages Thailand
to te FRASER & NEAVE HOLDINGS BHD 02 Food & Beverages Thailand (“F&B Thailand”)
Slide 8: F&B Thailand Revenue and Operating Profit
Revenue Revenue grew by 8.5% on higher demand for all (RM’000) 1,639,233 products. 1,511,476 During the year, the 9th Anniversary Celebration 8.5% Campaign received strong consumer response. Distribution coverage increased, supported by effective branding, consumer and trade campaigns. New pro
Slide 9: Our Exports
EN FRASER & NEAVE HOLDINGS BHD -. Our Exports
Slide 10: New markets: United States and West Africa region
49 New markets: United States (USA) and West Africa region * Exports are included within the F&B Malaysia & F&B Thailand segments.
Slide 11: Dividends
EN FRASER & NEAVE HOLDINGS BHD -. Dividends
Slide 12: Proposed final dividend and capex
Proposed final dividend of 30.5 FY 2016 FY 2015 sen per share (2015: 35.5 sen), Total equity 1 1,989,162 1,877,007 bringing full year dividends to 57.5 sen (2015: 57.5 sen) Total assets 3,205,873 3,022,569 Capex investments to build Net cash 188,957 112,209 capabilty across the Group to 1 Includ
Slide 13: Group financial summary
Revenue Profit after tax RM4,167.6 million RM385.4 million 1.5% 37.6% Operating profit Basic EPS RM433.4 million 105.3 sen 30.5% 28.8 sen Profit before tax Full year dividend RM442.9 million 57.5 sen/per share 32.7% No change
Slide 14: Business Outlook
FRASER & NEAVE HOLDINGS BHD 05 Business Outlook
Slide 15: Business outlook
Softening global economy with local economic uncertainties in both Malaysia and Thailand In Malaysia specifically, consumer sentiments and spending post Hari Raya have not been very positive. Commodity prices are trending higher, particularly sugar and milk-based commodity prices Ringgit con
Slide 16: Extracting Synergies
EN FRASER & NEAVE HOLDINGS BHD -. Extracting Synergies
Slide 17: Commercial realignment of soft drinks and dairies
In Malaysia, we used to operate with two commercial organisations: F&N Beverages Marketing Sdn Bhd for soft drinks; and F&N Dairies (Malaysia) Sdn Bhd for dairies. With the commercial realignment of soft drinks and dairies operations, both businesses would be managed under F&N Beverages Marketin
Slide 18: Investing for Sustainable Future
EN FRASER & NEAVE HOLDINGS BHD Q-. Investing for Sustainable Future
Slide 19: Commitment to lowest cost to market
Commitment to achieve lowest cost to market and be the best-in-class player in cost efficiency and productivity. To achieve projected volume growth of core products and also facilitate extension into new offerings and packaging formats.
Slide 20: New PET line in Shah Alam plant
F&NHB Chairman, Y.A.M. Tengku Syed Badarudin Jamalullail inaugurated the new PET line in Shah Alam plant in October 2016. The RM45 million line, which has been operational since June 2016, is expected to increase bottle production by 40 per cent or 8 million cartons annually.
Slide 21: UHT line and Shah Alam warehouse investment
RM30 million UHT line in Kuching to be operational in November 2016 RM180 million investment in a new warehouse and Cold Aseptic PET filling line in Shah Alam. Project commenced in Q3’ 2016
Slide 22: Latest capex of RM70 million
The Group’s latest capex of RM70 million will include : A new 600 bpm water line, expansion of the warehouse, production building and infrastructure at its mineral water plant in Bentong; and Polyethylene Terephthalate (PET) line automation in its Shah Alam plant. The state-of- the-art line will
Slide 23: New Products & Marketing Highlights
EN FRASER & NEAVE HOLDINGS BHD EQ. New Products & Marketing Highlights
Slide 24: New products
• F&N Magnolia Kid • F&N Magnolia Barista • TEAPOT Squeeze • Nutrisoy Lite
Slide 25: Sports sponsorships
SPORTS 100PLUS pledges RM3 million in full 100PLUS sponsors support of Kuala 100PLUS Malaysian Lumpur 2017 Junior Open. (29TH SEA GAMES and 9th ASEAN Para Games). Ranger sponsors 100PLUS ONESILAT WORLD Outrunner is back CHAMPIONSHIP for second year with SERIES. 10,000 runners!
Slide 26: New brand ambassadors
NEW BRAND AMBASSADORS 100PLUS signs 5 more national badminton players as its Brand Ambassadors. • Goh V Shem & Tan Wee Kiong - Men’s doubles • Chan Peng Soon and Goh Liu Ying - Mixed Magnolia Gingko Plus appoints doubles May Ratchanok Intanon, • Goh Jin Wei - Women’s junior singles player Thailand’s
Slide 27: Awards & Recognitions
EN FRASER & NEAVE HOLDINGS BHD -. Awards & Recognitions
Slide 28: ASEAN, FDA Quality and Green Industry awards
ASEAN BUSINESS AWARDS FDA QUALITY AWARD 2016 GREEN INDUSTRY AWARD MALAYSIA 2016 2016 (ANUGERAH from Thai Food & Drug INDUSTRI HIJAU 2016) in recognition of our contribution Administration, given to the best and success in ASEAN Food Manufacturers in Thailand by the Ministry of Natural by the ASEAN B
Slide 29: Safety, labour and brand awards
MSOSH GOLD EXCELLENT CLASS II AWARD ESTABLISHMENT ON 2015 LABOUR RELATION AND WELFARE 2016 by Malaysian Society for Occupational Safety by Ministry of Labour and Health Thailand (Dairies Thailand) BRANDLAUREATE INDUSTRY BRAND 2016 PUTRA BRANDS ICON AWARD 2016 AWARD (100PLUS) FMCG - Soft Drinks and D
Slide 30: Thank You
GN FRASER & NEAVE HOLDINGS BHD THANK YOU
Slide 31: Brand portfolio
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