Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — 1H2004 Earnings Presentation
13 slides from Fraser & Neave's earnings presentation, 2004
Slide 1: Group Overview - Half Year Results FY2004
Group Overview Dr Han Cheng Fong Half Year Results FY2004
Slide 2: Financial Results 1H2004
Financial Results 1H2004 $ million 1H2004 1H2003 +/- Revenue 1,702.3 1,878.2 -9% PBIT* 296.6 307.4 -4% APBE 124.1 141.4 -12% EPS* 53.7 52.9 +2% _____________________________________ * before exceptionals
Slide 3: Revenue by Activity
Revenue by Activity Printing & Publishing Invt & Othr Inc 14% 1% F&B 73% Properties 12% $ million 1H2004 1H2003 +/- Food & Beverage 1,236.8 1,104.8 +12% Properties 210.7 507.5 -58% Printing & Publishing 241.4 249.6 -3% Investment & Other Inc 13.4 16.3 -18% Total 1,702.3 1,878.2 -9%
Slide 4: Revenue 1H2004
Revenue 1H2004 Soft Drinks, Dairies and Breweries recorded strong growth in line with improving regional consumer sentiment, bolstered by gains in volumes and market shares Development Property revenues were affected by: the Compass Point securitisation in 1H2003 not being repeated this year
Slide 5: Revenue 1H2004
Revenue 1H2004 Improvement in shopping malls rental offset by softer office/ industrial leasing market
Slide 6: PBIT(BE) by Activity
PBIT(BE) by Activity Invt & Other Inc 17% Printing & Publishing 4% F&B 53% Properties 26% $ million 1H2004 1H2003 +/- Food & Beverage 157.8 134.9 +17% Properties 78.4 143.3 -45% Printing & Publishing 11.0 9.1 +21% Investment & Other Inc 49.5 20.1 +146% Total 296.6 307.4 -4%
Slide 7: Profitability 1H2004
Profitability 1H2004 PBIT decreased by 4% to $296.6m against a 9% drop in revenue • Soft Drinks and Dairies benefited from better product mix and cost control, partly offset by start-up losses in the Vietnam dairy plant • Breweries profitability improved in tandem with strong sales growth and from
Slide 8: Profitability 1H2004
Profitability 1H2004 • Development profit affected by: – correction in HDB upgraders market; – lower recognition from projects under development in the current period; and – gains from Compass Point securitisation in 1H2003 • Improvements from restructuring of Printing & Publishing operations
Slide 9: APBE by Activity
APBE by Activity Invt & Othr Inc 21% F&B 31% Printing & Publishing 5% Properties 43% $ million 1H2004 1H2003 +/- Food & Beverage 38.5 34.0 +13% Properties 53.8 96.9 -45% Printing & Publishing 6.2 5.0 +23% Investment & Other Inc 25.6 5.5 +367% Total 124.1 141.4 -12%
Slide 10: Key Financials
Key Financials 1H2004 1H2003 +/- Per Share Data EPS* (¢) 53.7 52.9 +2% NAV ($) 12.4 12.3 @ +1% DPS (¢) (net) 20.0 20.0 # - Financial Ratios Gearing (x) 0.81 0.72 Dividend cover (x) 2.7 2.6 Interest cover (x) 13.8 14.4 * before EI based on weighted average share capital @ as at 30 Sept 2003 # include
Slide 11: Market Outlook
Market Outlook Early signs of improving sentiment for the sluggish Singapore property market Positive for China beer operations with contribution from Guangdong Brewery, local production of Heineken and stabilised operations Overseas property developments expected to feature more prominently i
Slide 12: Going Forward
Going Forward Group stands to benefit if recovery of the Singapore and regional economies can be sustained, and recovery in property buyers’ confidence Continue to increase overseas presence Continue to replenish development stocks e.g. Paya Lebar Crescent, Songjiang, Hindhede, Woodsville Cour
Slide 13: Going Forward
Going Forward Soft Drinks and Dairies will continue to innovate and deliver market share growth - New product success – Fruit Tree Fresh Strengthen costs control efforts, rising energy and raw material costs a concern Continue to drive earnings improvement