Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2014 Earnings Presentation
21 slides from Fraser & Neave's earnings presentation, Nov 13, 2014
Slide 1: F&N Full Year Financial Highlights
F&N FULL YEAR FINANCIAL HIGHLIGHTS
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: FY2014 Performance Highlights
FY2014 Performance Highlights 29% EBIT growth Strong performance for the year ended 30 September 2014 (“FY2014”) • Strong profit growth in challenging environment • All divisions recorded strong volume growth • Adverse foreign exchange effect impacted profits 3 Full year ended 30 September 2014 13 N
Slide 4: FY2014 key financial figures
Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $2,421.1 $276.5 ▲ 5.5% ▲ 29.3% EBIT margin Gearing (%) (millions) 11.4% $219 (net cash) ▲ 210bps ▲ -nm- Earnings per share (basic)1,2 Dividend per share 3 (cents) (cents) 10.0 5.0 (capital reduction of $0.42 in Apr 2014) -% ▼ 67
Slide 5: Revenue by business segment and geography
Supported by strong volume growth in Beverages Revenue by Business Segment FY14 Revenue by Business Segment ($) (%) $2,421m $2,294m +5.5% Dairies 45% Publg & Print $2,421m 15% +5.5% $1,099m Beverages $1,042m +9.3% 40% $969m $887m FY14 Revenue by Geography (%) -2.9% $363m $352m Other ASEAN Malaysia 3
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue growth supported by higher volumes, moderated by weaker Kyat and Ringgit Beverages: Beer Volume Growth (Key Brands) (%) - Volume grew 34% driven by effective marketing and 34% sports sponsorship, and enhanced route-to-market excellence 5% - MYANMAR BEER enjoyed double-dig
Slide 7: Revenue | Dairies
Revenue | Dairies Revenue grew 8%1; Malaysia and Thailand each recorded double-digit volume growth2 Dairies: Malaysia Volume Growth (%) - Volume increased 7%; domestic volume recorded 10% growth, ahead of category 18% - Robust domestic volume growth was supported by effective trade programs and stro
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Education Publishing continued to diversify and grow its customer base • Strong overseas sales partly offset by lower local textbook and home reference sales • Exclusive partnership with Oxford University Press; textbook adoption in Chile; Math in Focus approved in
Slide 9: EBIT by business segment and geography
Profit growth supported by improved margins from Beverages and Dairies Malaysia FY14 EBIT by Business Segment EBIT by Business Segment (%) ($) +29.3% Beverages $277m 17.9% Others FY14 63% EBIT 15% Margin Publg $277m $214m 13.8% & FY13 EBIT Print $174m Margin +42.4% 2% Dairies 11.4% FY14 20% 9.3% EBI
Slide 10: EBIT | Beverages
EBIT | Beverages Earnings jumped 42% on higher sales and improved margins, despite weaker Kyat and Ringgit Beverages: Beer EBIT - Earnings driven by higher sales, favourable mix and +42% +31% +51% absence of one-off impairment in FY13 $174m - Beer EBIT improved 51% despite higher marketing $122m spe
Slide 11: EBIT | Dairies
EBIT | Dairies Earnings impacted by higher input costs and adverse foreign exchange effect; pricing control stemmed Thailand’s growth Dairies: Malaysia EBIT - EBIT growth of 25% +25% -5% Others - Driven by higher sales, improved production yields and $6m -4% Thailand nm non-recurring expenses in FY2
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing • Significant improvement in earnings on higher earnings from Publishing and Printing • Profitability improved on effective cost control • Benefited from better workflow and savings in operating cost due to consolidation of printing operations in Singapore • Negated by l
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Balance sheet reflects completion of Key Financial Ratios distribution in specie of Frasers Centrepoint FY2014 FY20131 Limited shares Total Equity2 $2,001m $8,878m • Capital distribution of $0.42 per share ($607 Tot
Slide 14: Summary
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Slide 15: Summary
SUMMARY • Maintained leading positions in key markets • Focus on • Strengthening our portfolio: Marketing and product innovation, and M&A • Allocating resources: To ensure capacities and capabilities • Building on/identifying strategic partnerships and extracting synergistic opportunities • Prudent
Slide 16: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited
Slide 17: F&N Group Unaudited Pro-Forma Profit Statement
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 $‘000 FY2013 FY2012 (Restated)1 (Restated)1 Revenue 2,294,119 2,161,302 Cost of sales (1,520,310) (1,467,456) Gross profit 773,809 693,846 Other (expenses)/income (net) (3,886) 2,116 Operating expenses - Distribution (187,
Slide 18: Pro-Forma Profit Statement (cont'd)
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 (cont’d) $‘000 FY2013 FY2012 (Restated)1 (Restated)1 Net finance income/(expense) 39,027 (21,594) Profit before fair value adjustment, taxation and exceptional items 252,898 127,015 Fair value adjustment of investment prop
Slide 19: Pro-Forma Profit Statement (cont'd)
F&N Group Unaudited Pro-Forma Profit Statement For the year ended 30 Sep 2013 (cont’d) $‘000 FY2013 FY2012 (Restated)1 (Restated)1 ATTRIBUTATBLE PROFIT TO: Shareholders of the Company - Before fair value adjustment and exceptional items Continuing operations 143,508 67,699 Discontinued operations 40
Slide 20: F&N Group Unaudited Pro-Forma Balance Sheet
F&N Group Unaudited Pro-Forma Balance Sheet As at 30 Sep 2013 $’000 FY2013 FY2012 (Restated)1 (Restated)2 SHARE CAPITAL AND RESERVES Share capital 834,659 768,664 Treasury shares (23) (23) Reserves 1,000,490 827,271 1,835,126 1,595,912 Non-controlling interests 346,023 347,412 2,181,149 1,943,324 Re
Slide 21: Pro-Forma Balance Sheet (cont'd)
F&N Group Unaudited Pro-Forma Balance Sheet As at 30 Sep 2013 (cont’d) $’000 FY2013 FY2012 (Restated)1 (Restated)2 CURRENT ASSETS Inventories 245,828 261,761 Trade receivables 305,445 309,217 Bank fixed deposits and cash and bank balances 697,818 592,416 Other current assets 113,303 134,010 1,362,39