Fraser & Neave Ltd. · SGX:F99

Fraser & Neave — FY2003 Earnings Presentation

17 slides from Fraser & Neave's earnings presentation, 2003

1. Slide 1: Group Overview

   Group Overview Fraser and Neave Limited Dr Han Cheng Fong

2. Slide 2: Group Overview

   Group Overview ƒ Results at a Glance ‹ Revenue ‹ Profitability ‹ Key Financials ‹ Dividends ƒ Delivering the Winning Edge ƒ Outlook ƒ Going Forward

3. Slide 3: Results at a Glance

   Results at a Glance $m FY2003 FY2002 % chg Revenue 3,640.0 3,483.8 4.5 PBIT* 587.3 500.7 17.3 ANP: before EI 273.0 225.9 20.9 after EI 333.0 241.0 38.2 * before EI

4. Slide 4: Revenue by Activity

   Revenue by Activity Pub'g & Print'g Invt & Other Inc 13.2% 0.8% Properties F&B 25.6% 60.4% $m FY2003 FY2002 % chg Food & Beverage 2,201.2 2,004.6 9.8 Properties 930.2 1,023.0 (9.1) Publishing & Printing 479.7 434.8 10.3 Investment & Other Inc 28.9 21.4 34.8 Total 3,640.0 3,483.8 4.5

5. Slide 5: Revenue

   Revenue ƒ SARS impact mitigated by geographic spread of F&B operations, gains from all divisions except Dairies. Maiden contributions from Sichuan Malaya Glass & F&N Vietnam Foods ƒ Lower residential sales and pressure on office & industrial rentals caused decline in Properties revenue ƒ Overseas pr

6. Slide 6: PBIT (before EI) by Activity

   PBIT (before EI) by Activity Invt & Other Inc Pub'g & Print'g 9.3% F&B 4.6% 42.6% Properties 43.5% $m FY2003 FY2002 % chg Food & Beverage 250.3 201.6 24.2 Properties 255.7 251.4 1.7 Publishing & Printing 26.9 17.8 51.0 Investment & Other Inc 54.4 29.9 82.0 Total 587.3 500.7 17.3

7. Slide 7: Profitability - PBIT

   Profitability - PBIT ƒ Soft Drinks and Dairies benefited from better product mix and materials prices. Strong breweries performance in NZ, PNG and Indochina ƒ Development gains from Compass Point lifted property earnings in a difficult market ƒ Revenue growth and costs control accounted for signific

8. Slide 8: ANP (before EI) by Activity

   ANP (before EI) by Activity Invt & Other Inc 7.7% F&B Pub'g & Print'g 5.4% 23.5% Properties 63.4% $m FY2003 FY2002 % chg Food & Beverage 64.1 56.0 14.5 Properties 173.1 157.0 10.3 Publishing & Printing 14.8 9.4 58.3 Investment & Other Inc 21.0 3.5 494.1 Total 273.0 225.9 20.9

9. Slide 9: Profitability - ANP

   Profitability - ANP ƒ Generally in line with PBIT gains, flow-through benefit from privatisations of CPL and TPL reflected

10. Slide 10: Key Financials

    Key Financials FY2003 FY2002 % chg Per $1 share: EPS* (¢) 103.2 80.3 28.5 NAV ($) 12.32 11.18 10.2 Financial Ratios: Gearing (x) 0.75 0.78 Interest cover (x) 13.4 10.5 * before EI based on weighted average share capital

11. Slide 11: Dividends

    Dividends FY2003 FY2002 % chg Dividends per $1 share: Gross (¢) 64.1 44.9 42.8 Net (¢) 50.0 35.0 42.9 Yield# (%) 4.2% Cover## (x) 2.1 2.4 # Net dividend yield: Net dividend divided by closing share price on the day before announcement ## Dividend cover: EPS (before EI) divided by net dividend per sh

12. Slide 12: FY1999-2003 Trend

    FY1999-2003 Trend Revenue ($ m) Revenue PBIT* PBIT* ($ m) 4,000 700 600 3,000 500 400 2,000 300 200 1,000 100 0 0 FY1999 FY2000 FY2001 FY2002 FY2003 * before EI * Before exceptional items

13. Slide 13: Delivering the Winning Edge

    Delivering the Winning Edge ƒ Back in 1999, many believed our $1 EPS target to be insurmountable ƒ Engineered strong comeback from the economic crisis ƒ Business right on track, shareholders reaping benefits through constant generous distributions

14. Slide 14: Delivering the Winning Edge

    Delivering the Winning Edge EPS* EPS* Share price** Share price** (¢) ($) 120.0 12 100.0 10 80.0 8 60.0 6 40.0 4 20.0 2 0.0 0 FY1999 FY2000 FY2001 FY2002 FY2003 * before EI ** as at 30 Sep * Before exceptional items

15. Slide 15: Outlook

    Outlook ƒ F&B expected to post better results with the positive economic outlook for the region and improved consumer sentiment ƒ Earnings from Properties are expected to be maintained ƒ Planned expansion in the publishing programme, increased printing capacity and the restructuring of the retail/ d

16. Slide 16: Outlook

    Outlook ƒ Signs of recovery encouraging, however operating environment remains extremely challenging ƒ Continue to drive business for EPS growth

17. Slide 17: Going Forward

    Going Forward ƒ Build on solid foundation, fortified since 1999, to chart Group’s future ƒ Continue brand management focus for market dominance ƒ Stronger position to seize expansion opportunities and secure longer term earnings growth ƒ Manage assets to maximise returns

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