China Resources Beer (holdings) Co. Ltd. · HKEX:291
China Resources Beer (holdings) — H1 2016 Earnings Presentation
18 slides from China Resources Beer (holdings)'s earnings presentation, Aug 19, 2016
Slide 1: H1 2016 Financial and Operational Review
H1 2016 Financial and operational review Investor presentation 19 August A g t 2016 1
Slide 2: Results Summary
Results Summary H1 2016 H1 2015 change RMB’m ** RMB’m ** Continuing operations * Turnover 15,213 15,499 -2% EBIT 1,657 1,191 +40% Profit attributable to shareholders 605 417 +45% EPS (RMB) 0.23 0.16 +44% ROE 5.7% 4.5% +27% Additions to non-current assets 651 1,038 -37% Net cash/(debt) 7 (685) +101%
Slide 3: Beer (No.1 brand by volume in the world since 2008)
Beer (No.1 brand by volume in the world since 2008) Growth through: Solidifying market leader position and upgrade of product mix H1 2016 H1 2015 change RMB’m RMB m RMB’m RMB m Sales volume (million kl) 6.13 6.25 -2% ASP (in RMB/kl) 2,483 2,480 - Turnover 15,213 15,499 -2% 2% Gross profit 5,120 5,
Slide 4: Beer: Segment results
Beer (No.1 brand by volume in the world since 2008) Segment results Turnover contribution EBIT margin improvement RMB’m 20,000 20% -2% 19% +8% RMB15,213m RMB15,499m 16,000 16% RMB3,711m RMB3,749m 11% % 24% of total 24% of total 12 000 12,000 12% RMB3,662m RMB3,793m +3% 24% of total 25% of total +1
Slide 5: Nationwide geographical footprints
Beer (No.1 brand by volume in the world since 2008) Nationwide geographical footprints Geographical distribution of the breweries 5(1.3mkl) [-] Heilongjiang gj g Having presence in 25 out of 34 regions/cities (incl (incl., autonomous regions regions, municipalities and SAR) in China 3(0.8mkl) [-]
Slide 6: Market share distribution
Beer (No.1 brand by volume in the world since 2008) Market share distribution China beer market competitive landscape by volume 2005 Top five market share = 47.3% 2015 Top five market share = 73.7% Tsingtao Brewery 13.4% CRB Others 26.3% 24.6% CR Snow 13.0% Others 52 7% 52.7% Beijing Carlsberg Yan
Slide 7: Proven growth track records
Beer (No.1 brand by volume in the world since 2008) Proven growth track records Turnover UNP In HK$’m In HK$’m 40,000 1,000 800 30,000 600 20,000 400 10,000 200 - - 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Turnover UNP "Courageou
Slide 8: Evolution of the China Beer Market Over the Past 3 Decades
Beer (No.1 brand by volume in the world since 2008) Evolution of the China Beer Market Over the Past 3 Decades CR Snow has been at the forefront of evolution,, effectively yppositioning g itself to capture p outsized growth g First Stage Second Stage Third Stage Regional Expansion Market Consolida
Slide 9: CRB: Pure beer business
Beer (No.1 brand by volume in the world since 2008) CRB: Pure beer business The Undisputed Leader in World’s Most Attractive Beer Market 1 • China the llargestt1 and Chi iis th d mostt attractive tt ti beerb market k t globally l b ll valued l d att US$79b US$79bn in i 2014 • CRE is the #1 brewer
Slide 10: Differentiated sales channel strategy with unique on-the-ground capabilities
Beer (No.1 brand by volume in the world since 2008) Differentiated sales channel strategy with unique on-the-ground capabilities Distribution strategy focused on professionalism, exclusivity and flatness of network Urban markets Regional markets1 Specific sales force to target on-trade customers
Slide 11: Future growth strategy
Beer (No.1 brand by volume in the world since 2008) Future growth strategy F h penetrate high-end Further hi h d on-traded andd modern d retail il channels h l well ll suited i d Our 1 vision going forward is to continue to capture market share and improve efficiency for premium brands Focus on
Slide 12: Appendix I – Global beer consumption summary
Appendix I – Global beer consumption summary Long term potential on market volume growth (32% of Germany only) 2014 Top ten beer markets per capita volume consumption 150 125 114 3.1x 100 100 Liters per capiita 77 74 75 69 63 60 48 50 37 37 25 0 Germany Vietnam m Poland d Brazzil Russia a Mexico o J
Slide 13: Appendix II – Historical major M&As in beer business
Appendix II – Historical major M&As in beer business Strong bargaining power and lower acquisition cost on M&A Chongqing Shenzhen Tsingtao acquired 39% AB InBev Carlsberg acquired 12.25% ABInbev Carlsberg AB InBev acquired US$/kl acquired Henan 100% stake in Jilin 2,500 Brewery Jingyalong stake in Y
Slide 14: Appendix III – CRE awards
A Appendix di III – CRE awards d Highlights of accolades received 2005-2015 Named one of Hong Kong Outstanding Enterprises by Economic Digest 2006-2011 Selected as one of the recipients of the "Recognition Awards - Asia's Best Companies for Corporate Governance" by Corporate Governance Asia 2006/2
Slide 15: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2010-2015 Awards for cover photo/design; printing and production; non-traditional in the categories of food distributors processors & wholesalers, distributors, wholesalers manufacturing & distributing, distributing
Slide 16: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2011-2015 Awarded as one of the companies receiving the commendation in Corporate Social Responsibility A Award dbby CAPITAL and d CAPITAL Weekly W kl 2011 Received 2 best awards for investor relations and investor
Slide 17: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2012-2015 Received Outstanding Corporate Social Responsibility Award by The Mirror Monthly Magazine 2013/2014 Frank Lai was selected as Asian Company Secretary of the Year by Corporate Governance Asia th 2013/2014 R
Slide 18: Disclaimer
Disclaimer Data and information contained in this presentation is provided for informational purposes only. Neither Chi Resources China R B Beer (H ldi (Holdings) ) Company C Li it d nor any off its Limited it subsidiaries b idi i shall h ll be b liable li bl for f any errors or delays in the conten
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