Tingyi (Cayman Islands) Holding Corp. · HKEX:322

Tingyi (Cayman Islands) — H1 2016 Earnings Presentation

25 slides from Tingyi (Cayman Islands)'s earnings presentation, Aug 29, 2016

  1. Slide 1: Presentation on 2016 Interim Results

    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in re

  2. Slide 2: Tingyi Holding Corp. 1H 2016 Results

    Tingyi Holding Corp. 1H 2016 Results 29 August 2016 © 2016 Tingyi(Cayman islands)Holding Corp., All right reserved.

  3. Slide 3: Disclaimer

    Disclaimer The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice and no representation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completenes

  4. Slide 4: Contents

    Contents  1H 2016 review  Financial highlights  Market shares  Distribution network  Production summary © 2016 Tingyi(Cayman islands)Holding Corp., All right reserved. . 3

  5. Slide 5: 2Q 2016 – Sales & Profit

    2Q 2016 – Sales & Profit US$ million 2Q 2016 2Q 2015 Change% Turnover 2,092 2,549 -17.95 Gross Profit 666 867 -23.16 Gross Margin 31.86% 34.02% -2.16ppt. EBITDA 206 350 -41.12 Profit 18 140 -87.07 Profit attributable to owners of 12 91 -87.13 the Company EPS (US cents) 0.21 1.62 -1.41 cents © 2016 T

  6. Slide 6: 1H 2016 – Sales & Profit

    1H 2016 – Sales & Profit US$ million 1H 2016 1H 2015 Change% Turnover 4,191 4,870 -13.94 Gross Profit 1,326 1,602 -17.21 Gross Margin 31.64% 32.89% -1.25ppt. EBITDA 488 680 -28.25 Profit 92 273 -66.49 Profit attributable to owners 70 198 -64.75 of the Company EPS (US cents) 1.24 3.53 -2.29 cents © 2

  7. Slide 7: Turnover by Products

    Turnover by Products US$ million 2Q 2016 2Q 2015 Change% Instant Noodles 700 792 -11.59 Beverages 1,343 1,702 -21.06 Instant Food 27 29 -6.91 Others 22 26 -20.53 Total 2,092 2,549 -17.95 2Q 2015 2Q 2016 Instant Instant Food Others Food Others 1% 1% 1% 1% Noodles Noodles 31% 34% Beverages Beverages 6

  8. Slide 8: Turnover by Products

    Turnover by Products US$ million 1H2016 1H2015 Change% Instant Noodles 1,542 1,792 -13.95 Beverages 2,535 2,962 -14.40 Instant Food 63 67 -6.08 Others 51 49 3.31 Total 4,191 4,870 -13.94 1H 2015 1H 2016 Instant Food Others Instant Food Others 2% 1% 1% 1% Noodles Noodles Beverages 37% Beverages 37% 6

  9. Slide 9: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 2Q 2016 2Q 2015 Change% Bowl 334 375 -10.88 High end Packet 205 312 -34.21 Mid end Packet 146 84 73.29 Snack Noodle & Others 15 21 -29.24 Total 700 792 -11.59 2Q 2015 2Q 2016 Mid end Snack Noodle Snack Noodle Packet & Others Mid end & Others 11% 2% Packet

  10. Slide 10: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 1H 2016 1H 2015 Change% Bowl 754 874 -13.79 High end Packet 444 690 -35.69 Mid end Packet 313 188 66.92 Snack Noodle & Others 31 40 -21.65 Total 1,542 1,792 -13.95 1H 2015 1H 2016 Snack Noodle Snack Noodle Mid end Mid end & Others & Others Packet 2% Packe

  11. Slide 11: Beverage Sales by Products

    Beverage Sales by Products US$ million 2Q 2016 2Q 2015 Change% Tea 560 690 -18.93 Water 285 383 -25.43 Juice 169 253 -32.94 Carbonated drinks and Others 329 376 -12.54 Total 1,343 1,702 -21.06 2Q 2015 2Q 2016 CSD & Others CSD & Others 22% 24% Tea Tea Juice 41% 42% Juice 15% 13% Water Water 22% 21% ©

  12. Slide 12: Beverage Sales by Products

    Beverage Sales by Products US$ million 1H 2016 1H 2015 Change% Tea 1,118 1,257 -10.99 Water 426 528 -19.31 Juice 334 443 -24.73 Carbonated drinks and Others 657 734 -10.49 Total 2,535 2,962 -14.40 1H 2015 1H 2016 CSD & Others CSD & Others 25% 26% Tea Tea 42% Juice 44% Juice 15% 13% Water Water 18% 1

  13. Slide 13: Gross Margin by Products

    Gross Margin by Products % 2Q2015 40 36.38 35.95 34.02 34.59 2Q2016 35 30.89 31.86 29.66 30 27.06 25 20 15 10 5 0 Instant Noodles Beverages Instant Food Overall Change (ppt.) -2.60 -1.79 5.06 -2.16 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 12

  14. Slide 14: Gross Margin by Products

    Gross Margin by Products % 1H2015 40 34.74 33.98 35.35 1H2016 35 33.24 32.89 31.64 30.30 27.89 30 25 20 15 10 5 0 Instant Noodles Beverages Instant Food Overall Change (ppt.) -2.41 -0.76 2.11 -1.25 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 13

  15. Slide 15: EBIT by Products

    EBIT by Products US$’000 2Q 2016 2Q 2015 Change% Instant Noodles 9,262 73,214 -87.35 Beverages 43,160 140,864 -69.36 Instant Food -3,278 -5,930 44.72 Others 12,523 3,827 227.23 Group EBIT 61,667 211,975 -70.91 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 14

  16. Slide 16: EBIT by Products

    EBIT by Products US$’000 1H 2016 1H 2015 Change% Instant Noodles 69,996 193,101 -63.75 Beverages 102,906 222,594 -53.77 Instant Food -6,521 -11,019 40.82 Others 21,114 8,093 160.89 Group EBIT 187,495 412,769 -54.58 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 15

  17. Slide 17: Profit

    Profit US$’000 2Q 2016 2Q 2015 Change% Instant Noodles 12,166 59,023 -79.39 Beverages 11,589 90,527 -87.20 Instant Food -3,250 -5,910 45.01 Others -2,461 -4,125 40.34 Group Profit 18,044 139,515 -87.07 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 16

  18. Slide 18: Profit

    Profit US$’000 1H 2016 1H 2015 Change% Instant Noodles 60,827 153,211 -60.30 Beverages 39,431 137,053 -71.23 Instant Food -6,439 -10,955 41.22 Others -2,229 -6,017 62.95 Group Profit 91,590 273,292 -66.49 © 2016 Tingyi(Cayman islands) Holding Corp., All right reserved. 17

  19. Slide 19: Financial Position

    Financial Position As at 30/06/2016 As at 31/12/2015 *ROA (Annualized) 4.40% 5.51% *ROE (Annualized) 4.91% 8.63% Current Ratio 0.69 0.68 Gearing Ratio 0.34 0.49 A/R Turnover /Days 11.06 9.46 Finished Goods Turnover/Days 10.64 10.87 Cash and cash equivalents US$1.483 billion US$1.024 billion *ROA：EBI

  20. Slide 20: Material Price

    Material Price RMB/Ton 3,700 Flour 10,500 Palm Oil 3,500 3,300 9,500 3,100 8,500 2,900 3,370 7,500 2,700 5,920 2,500 6,500 2,300 5,500 2,100 1,900 4,500 1,700 3,500 1,500 PET Resin 9000 Sugar 14000 8000 13000 7000 12000 5,680 6000 11000 5000 10000 4000 9000 3000 8000 6,820 2000 7000 1000 6000 0 © 20

  21. Slide 21: Instant Noodle Market Share by Volume and Value

    Instant Noodle Market Share-by Volume Instant Noodle Market Share-by Value % % 70.0 60.0 Tingyi Holding Tingyi Holding 56.5 56.5 57.2 56.4 60.0 56.0 55.9 55.0 47.7 46.9 50.0 46.3 47.4 46.3 46.3 52.4 44.0 44.944.2 45.0 56.3 56.3 55.6 56.4 57.1 55.6 42.4 55.2 54.4 47.2 46.0 50.0 45.7 51.3 40.0 42.9 43

  22. Slide 22: RTD Tea Market Share by Volume and Value

    RTD Tea Market Share-by Volume RTD Tea Market Share-by Value 60.0 Tingyi Holding % Tingyi Holding % 60.0 56.0 56.4 56.6 48.9 47.8 48.5 49.4 54.5 53.7 50.0 53.6 45.7 46.8 47.0 52.5 45.8 45.7 51.2 43.9 44.0 54.2 53.9 47.6 53.9 50.0 48.3 46.3 52.2 46.0 51.3 45.2 44.4 43.3 40.0 43.4 41.8 36.2 47.4 Compa

  23. Slide 23: RTD Tea (no milk tea) Market Share by Volume and Value

    RTD Tea (no milk tea) Market Share-by Volume RTD Tea (no milk tea) Market Share-by Value % Tingyi Holding 70.0 Tingyi Holding % 60.0 55.9 56.1 56.5 56.3 55.7 60.9 61.4 62.3 62.4 61.4 54.8 59.4 60.1 59.3 52.5 52 52.2 53.4 60.0 58.0 51.1 51.9 56.1 56.5 50.9 54.5 61.4 60.4 53.8 53.5 60.8 50.0 53.3 53.3

  24. Slide 24: Diluted Juice Drinks and Bottled Water Market Share by Volume

    Diluted Juice Drinks (below39% juice content) Bottle Water Market Share-by Volume Market Share-by Volume % 40.0 % 30.0 25.9 33.8 35.0 25.0 24.1 22.8 30.5 31.0 22.5 21.5 22.6 30.0 22.7 21.8 22.0 29.1 28.3 Company A 30.0 28.4 21.9 27.1 Company A 19.7 20.5 28.9 24.1 21.5 20.0 20.8 19.1 25.6 18.6 27.7 2

  25. Slide 25: Nation-Wide Distribution Network and Production Lines

    A) Nation-Wide Distribution Network As at 30/06/2016 As at 31/03/2016 As at 31/12/2015 Sales Offices: 600 598 606 Warehouse: 71 71 73 Wholesaler: 31,828 29,985 30,095 Direct Retailer: 116,468 115,435 116,036 B) Production Lines Instant Noodles 227 227 227 Beverage 474 468 468 Instant Food 16 16 16 ©

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