Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — FY2009 Earnings Presentation
19 slides from Fraser & Neave Holdings Bhd's earnings presentation, Nov 10, 2009
Slide 1: FY08/09 Full Year Results Briefing
Fraser & Neave Holdings Bhd FY08/09 Full Year Results Briefing 10 Nov 2009 Presented by : Tan Ang Meng, CEO
Slide 2: Financial highlights
Financial highlights • Resilient despite recession in core markets of Malaysia & Thailand • Double digit improvement in profits, PBIT > RM300mil & AP > RM200 mil marks for the 1st time • Soft drinks core brands continued to yield record volumes • Dairies margin improvements from lower input costs •
Slide 3: Unusual items
Unusual items RM mil FY09 FY08 Soft drinks VSS (4.1) - Rojana relocation cost (5.3) - KL Glass closure (13.5) (1.7) Sichuan earthquake - (2.7) (22.9) (4.4) FNHB Full Year Results Briefing FY08/09 - 10 Nov 09 3
Slide 4: Financial highlights
Financial highlights Key ratios FY09 FY08 +/-- (%) +/ Per share - EPS (sen) 63.0 46.8 +34.5% - NAV (RM) 3.63 3.32 +9.3% - DPS (net) (sen) 41.75 40.08 +4.17% PBIT margin (after UI) 8.4% 7.0% ROE 17.4% 14.1% Net Gearing (x) 0.27 0.20 Share price @ 30 Sep (RM/share) 10.32 9.05 FNHB Full Year Results Br
Slide 5: Group revenue
Group revenue • Marginal growth this year following 28% improvement LY (FY07 to FY08) • Soft drinks driven by strong volume growth in 100Plus & Seasons • Lower Dairies revenue due to higher trade discounts & lower exports • Glass benefitted from better selling prices / sales mix • Properties revenue
Slide 6: Group PBIT before UI
Group PBIT before UI • Strong performance from F&B business spurred Group PBIT • Dairies division in particular put up outstanding performance • 9th year of consecutive record PBIT RM mil 360 +29.0% +20.3m +0.8m -0.02m 336.8m +36.9m 320 +17.7m 280 261.1m 240 200 PBIT before UI Soft drinks Dairies Ma
Slide 7: Segment revenue & PBIT
Segment revenue & PBIT RM 3,737.1mil RM336.8mil Glass, 41m (12%) Glass, 466m Dairies Property/Others, (12%) Thailand, 10m (3%) Dairies 813m Property/Others, Thailand, 55m (22%) 63m, (2%) (16%) Dairies Dairies PBIT Division Revenue Division 51% 43% before UI Soft drinks, Dairies Soft drinks, Dairies
Slide 8: Group revenue - 5 year trend
Group revenue - 5 year trend RM (mil) +28.2% +1.7% 4,000 3,674 3,737 3,500 +47.3% 3,000 2,865 2,500 +0.5% 1,944 2,000 1,935 1,500 1,000 500 0 FY05 FY06 FY07 FY08 FY09 • Nestle canned milk business was acquired in Feb 2007, added > RM1 bil to revenue FNHB Full Year Results Briefing FY08/09 - 10 Nov 0
Slide 9: Group profit - 5 year trend
Group profit - 5 year trend PBIT before UI AP after UI RM (mil) RM (mil) 400.0 +29% 250 +34.5% 336.8 224.4 300.0 +14.6% 200 +9.1% +17.6% 261.1 +7.1% 166.8 +8.2% 227.8 152.9 +5.9% 142.8 150 193.7 132 200.0 182.9 100 100.0 50 0.0 0 FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 • Double digit CAGR
Slide 10: Group profit - 10 year trend
Group profit - 10 year trend RM mil 350 +4.1x vs. FY00 PBT AP 300 300 250 240 +4.0x vs. FY00 221 224 194 200 184 167 157 153 150 143 132 122 123 116 104 100 88 84 73 75 56 50 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 As at September FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Change
Slide 11: Operations Review - Soft drinks
Operations Review - Soft drinks RM mil vs. LY Revenue 1,309 +10.5% PBIT (before UI) 141 +14.4% • Overall volume +8% despite of economic recession in Malaysia • Revenue +10.5%, PBIT +14.4% • Record volume from Jan 09 CNY sales and continuing aggressive sales & marketing activities • Seasons ASD volum
Slide 12: Operations Review - Soft drinks
Operations Review - Soft drinks FY00 : 31.9mil case FY04 : 41.8mil case FY09 : 52.0mil case F&N KO F&N KO F&N KO 50% 50% 65% 35% 67% 33% • Over the past 10 years, F&N brands have been growing faster than KO brands • F&N brands account for 67% of volume currently, up from 50% ten years ago FNHB Full
Slide 13: Operations Review - Dairies Malaysia
Operations Review - Dairies Malaysia RM mil vs. LY Revenue 1,085 - 4.7% PBIT (before UI) 90 +68.8% • Volume & revenue -5% • Domestic volume down 3%, exports -11% • Tactical price discounting by F&N while heavy price discounting by competitors affected dairies volume • Melamine scare & full plant cap
Slide 14: Operations Review - Dairies Thailand
Operations Review - Dairies Thailand RM mil vs. LY Revenue 813 - 4.7% PBIT (before UI) 55 +58.4% • Volume declined 4%, revenue down 5% • Domestic volume stable, export volume contract 20% ~ lower sales to Nestle affiliates • PBIT gained 58%, benefitting from cost saving projects & lower input costs.
Slide 15: Operations Review - Glass
Operations Review - Glass RM mil vs. LY Revenue 466 +1.0% PBIT (before UI) 41 +1.9% • 11% contraction in volume due to lower demand, especially Thailand and closure of KL Glass • 1% revenue growth arising from better selling prices & sales mix • 2% PBIT growth on improved margins • M3 furnace in JB
Slide 16: Operations Review - Properties / Others
Operations Review - Properties / Others RM mil vs. LY Revenue 63 +79.8% PBIT (before UI) 10 -0.2% • 83% of the project completed, on track for Dec 09 completion • Ongoing negotiation to secure tenant for Techno Centre & retail outlets • Seeking approval to build link-bridge to Chan Sow Lin LRT stati
Slide 17: Dividends
Dividends • Proposed final dividend of 4 sen gross + 21 sen tax exempt per share (net 24.00 sen) and bonus tax exempt dividend of 5 sen • Full year net dividend +4.17% vs. LY • Another record payment • Payout ratio < previous years as group reinvests in Dairies new plant in Pulau Indah & Rojana Spec
Slide 18: Business outlook
Business outlook External environment is characterized by : + Improving growth prospects in Malaysia, Thailand & the region + Stable to more positive consumer sentiments + Weakening greenback + Government actions to boost spending - Volatile commodity & financial markets - Withdrawal of subsidy for
Slide 19: End of presentation
End of presentation 19
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