China Resources Beer (holdings) Co. Ltd. · HKEX:291
China Resources Beer (holdings) — H1 2024 Earnings Presentation
33 slides from China Resources Beer (holdings)'s earnings presentation, Aug 19, 2024
Slide 1: 1H 2024 Results Announcement
1H 2024 Results Announcement Investor Presentation 19 August 2024
Slide 2: Development Strategy - Beer
Development Strategy - Beer Fie Siainiai YT det) TT et ISB BE a
Slide 3: Sustainable Growth of Premium Products
Sustainable Growth of Premium Products
Slide 4: First Half Results Overview - From Zero to Thirty
First Half Results Overview - From Zero to Thirty 4
Slide 5: Interim Results Summary
Interim Results Summary 1H2024 1H2023 Change RMB m RMB m Turnover 23,744 23,871 -0.5% - Beer business 22,566 22,894 -1.4% - Baijiu business 1,178 977 +20.6% Gross profit 11,139 10,991 +1.3% EBITDA * 7,517 7,362 +2.1% EBIT 6,368 6,245 +2.0% Profit attributable to shareholders (PAS) 4,705 4,649 +1.2%
Slide 6: Interim Results Summary: Healthy Operating Cash Flow
Interim Results Summary: Healthy Operating Cash Flow Healthy operating cash flow would The company continues to 1H2024 vs 1H2023 drive distribute interim dividend, Net cash from operating long-term business growth willing to share phased activities & steady increase in results with shareholders +25.
Slide 7: Interim Results Summary: Healthy Return on Equity
Interim Results Summary: Healthy Return on Equity Performance of share price vs business performance varied in the past 5 years from 1H2019 to 1H2024 ROE increased by 5.4 pct and PAT grew at a CAGR of 20.4% investors gain more confidence to the Company’s future development 20% 80.0 18.5% 69.75 1 pct
Slide 8: Beer Business: Effective Premiumisation Strategy
Beer business: Effective Premiumisation Strategy 1H2024 1H2023 Change RMB m RMB m Sales volume (million kl) 6.348 6.571 -3.4% ASP (RMB/kl) 3,554 3,484 +2.0% Turnover 22,566 22,894 -1.4% Gross profit 10,343 10,351 - EBITDA 7,140 6,973 +2.4% EBIT 6,365 6,202 +2.6% Gross profit margin 45.8% 45.2% +0.6
Slide 9: Beer Business: Effective Premiumisation Strategy
Beer business: Effective Premiumisation Strategy EBIT/kl In the past 5 years, EBITDA/kl 1H2024 vs 1H2023 (excl. special items*) (excl. special items*) exceeded RMB1,000 improved by over 2 pct GP/kl for the first time per year on average +3.4% Unit: ’000kl 45.2% 45.8% 1,629 37.8% 40.4% 42.3% 42.3% 1,
Slide 10: Dual Empowerment Model of "Baijiu + Beer" Businesses
Dual Empowerment Model of “Baijiu + Beer” Businesses 4 main advantages and 3-pronged driving force • Leverage of the 4 main advantages established CR Beer: development Management experience, resources, management mechanisms, and listed platforms • Utilise the respective strengths of CR Beer, Dual Ch
Slide 11: Dedication to High-quality Development
Dedication to High-quality Development
Slide 12: To Become the Leader of the New World of the Beer Industry
To Become the Leader of the New World of the Beer Industry 1 High Product Quality Production equipment, technology and craftsmanship and product quality have reached international standards 2 High Standard Production Process First-class equipment, modern logistics, exploration of digital factory, et
Slide 13: Proven Growth Track Records with "3+3+3" Strategic Roadmap
Proven Growth Track Records with “3+3+3” Strategic Roadmap Profit of beer business exceeded RMB5 billion Unit: RMB Million Turnover 1994-2001 CAGR* 2001-2008 CAGR* 2008-2017 CAGR* 2017-2023 CAGR* PAS Turnover: +31%; Turnover: +30%; Turnover: +8%; Turnover: +4%; 40,000 PAS: +26% PAS: +22% PAS: +9% PA
Slide 14: Join Hands to Expand China's Premium Market
Join Hands to Expand China’s Premium Market Sales volume of Heineken® exceeded 600,000 kilolitres • China’s leading beer enterprise • Established in 1864, famous brand with a long history • Heineken® is one of the most recognised international beer • Comprehensive brand portfolio covering various ag
Slide 15: Enrich Product Portfolio to Drive the Sales of Premium Products
Enrich Product Portfolio to Drive the Sales of Premium Products Focus on key segments and major product categories Snow Draft Beer Heineken® SuperX Expand coverage Initiate the second five- Upgrade and replacement • Achieve a significant • Optimise coverage plan increase in the sales volume year str
Slide 16: Deepen the Development of Key Customer Management
Deepen the Development of Key Customer Management Continuously deepen the key customer model Integrated construction of the key customer platform Deepen the construction of the empowerment • Headquarters continues to expand, strengthen, and system for major clients and leverage their advantages opti
Slide 17: Second-time Organisational Transformation
Second-time Organisational Transformation Completed organisational restructuring and the second-time organisational transformation to promote a more modern organisational governance CR Beer HR Department Intelligence Intelligence China Resources Snow (Organisation and and Environment, Health and Saf
Slide 18: Digital Upgrade
Digital Upgrade Reduce costs and increase efficiency, and explore new growth drivers of businesses by data empowerment Construct a procurement mall, Accelerate the landing of blueprint of intelligent synchronise the control of procurement manufacturing, construct intelligent factory, and build and f
Slide 19: Improve Cost Efficiency via Various Measures
Improve Cost Efficieny via Various Measures Concentrated capacity and advantageous procurement scale Unit: million kl Capacity Production cost structure Annual 31.12.2023 30.6.2024 Production 1H 2024 Capacity (million kl) 19.4 2.6 2.3 1.6 1.6 1.2 1.2 1.1 1.1 1.1 0.9 0.9 0.9 0.5 0.4 0.3 0.3 0.3 0.3 0
Slide 20: Construction of Headquarters Base and Beer Town
Construction of Headquarters Base and Beer Town Celebrate the 30th anniversary together CR Snow Shenzhen Headquarters Base Project A localised, social, and diversified beer lifestyle experiential community that becomes an important part of the young culture in Shenzhen and its surrounding areas. • H
Slide 21: Industry Leader with Outperforming Results
Industry Leader with Outperforming Results
Slide 22: To Become an Explorer of the New World of the Baijiu Industry
To Become an Explorer of the New World of the Baijiu Industry Successfully entered phase 2 - "Development" Phase 1 “Exploration” Phase 2 “Development” Phase 3 “Enhancement” • Prices begin to stabilise • Conducting sustainable • Sales begin to grow business • Manage and enter the industry, explore an
Slide 23: Build a Strategy for Creating a Matrix of Flagship Products
Build a Strategy for Creating a Matrix of Flagship Products Continuously enriching the "1+1+N" brand matrix Create a "1" premium and leading baijiu brand nationwide Create a "1" brand in the national mid-low range Create "N" valuable regional brands 23
Slide 24: Establish a Marketing System in the New World of the Baijiu Industry
Establish a Marketing System in the New World of the Baijiu Industry Continuously improve and jointly create value Price Management Lean Sales Research methods for formulating and Take the project system as the starting point, adjusting price systems, establish a price promote the implementation of
Slide 25: Build and Optimise the Key Customer Platform
Build and Optimise the Key Customer Platform Initiate channel empowerment and operations Co-create a new world of baijiu Establish a distinctive key customer operation and management model for China Resources Wine Customer Customer Customer development and capability informatisation communication de
Slide 26: Major Awards
Major Awards Organiser Awards Details Institutional Investor 2024 Asia Executive Team • Most Honored Company (Consumer Staples Sector) • Best CEO (Consumer Staples Sector) • Best CFO (Consumer Staples Sector) • Best Investor Relations Professional (Consumer Staples Sector) • Best Investor Relations
Slide 27: Major Awards (Cont'd)
Major Awards (Cont’d) Organiser Awards Details Corporate Governance Asia Asian Excellence Award 2024 • Asia's Best CEO (Investor Relations) • Asia's Best CFO (Investor Relations) • Best Investor Relations Company • Best Corporate Communications • Best Investor Relations Professional Forbes Global 20
Slide 28: Major Awards (Cont'd)
Major Awards (Cont’d) Organiser Awards Details China Association of The 20th China Quality Award • China Resources Snow is the first beer enterprise to receive this Quality award in nearly past two decades Ministry of Commerce, The third batch of the “China Time- • The brands “Snow” and “Guizhou Jin
Slide 29: Major Awards (Cont'd)
Major Awards (Cont’d) Organiser Awards Details Hong Kong Investor HKIRA 9th Investor Relations Awards • Overall Best IR Company Awards - Large Cap Relations Association • Grand ESG Award - Large Cap • Best IR by Chairman/CEO - Large Cap • Best IR by CFO - Large Cap • Best IRO (Investor Relations Off
Slide 30: Major Awards (Cont'd)
Major Awards (Cont’d) Organiser Awards Details Corporate Governance Asia Asian Excellence Award 2023 • Asia's Best CEO (Investor Relations) • Asia's Best CFO (Investor Relations) • Best Investor Relations Company • Best Environmental Responsibility • Best Investor Relations Professional Fortune Chin
Slide 31: Major Awards (Cont'd)
Major Awards (Cont’d) Organiser Awards Details The Hong Kong Council of Caring Company Scheme 2021/22 • Certificate for the Caring Company Logo Award Social Service MerComm, Inc. 2023 ARC Awards International The 2022 Annual Report is recognised with below awards: • GOLD - Financial Data: Manufactur
Slide 32: Disclaimer
Disclaimer Data and information contained in this presentation is provided for informational purposes only. Neither China Resources Beer (Holdings) Company Limited nor any of its subsidiaries shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon. This
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