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

Tingyi (Cayman Islands) — Q3 2013 Earnings Presentation

25 slides from Tingyi (Cayman Islands)'s earnings presentation, Nov 18, 2013

  1. Slide 1: Presentation on 2013 Third Quarterly 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. 3Q 2013 Results

    0322 HK Tingyi Holding Corp. 3Q 2013 Results 18 November 2013, Hong Kong Corporate web site: www.masterkong.com.cn Email: IR@tingyi.com © 2013 Tingyi (Cayman Islands) Holding Corp. All rights 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 norepresentation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completeness

  4. Slide 4: Contents

    Contents  3Q 2013 review  Financial highlights  Market shares  Distribution network  Production summary © 2013 Tingyi (Cayman Islands) Holding Corp. All rights reserved. 3

  5. Slide 5: 3Q 2013 Sales & Profit

    3Q 2013 Sales & Profit 3Q 2012 US$ million 3Q 2013 Change% (Restated) Turnover 3,390 2,946 15.08 Gross Profit 1,104 922 19.72 Gross Margin 32.58% 31.32% 1.26ppt. EBITDA 472 400 17.97 278 213 30.97 Profit Profit attributable to owners of the Company 186 157 18.40 EPS (US cents) 3.32 2.81 0.51 US Cent

  6. Slide 6: 1-9/2013 Sales & Profit

    1‐9/2013 Sales & Profit 1‐9/2012 US$ million 1‐9/2013 Change% (Restated) Turnover 8,813 7,479 17.83 Gross Profit 2,724 2,274 19.80 Gross Margin 30.91% 30.41% 0.50ppt. EBITDA 1,054 1,134 ‐7.07 Profit 523 636 ‐17.70 Profit‐after excluding gain on bargain purchase 523 445 17.53 Profit attributable to o

  7. Slide 7: Turnover by Products

    Turnover by Products US$ million 3Q 2013 3Q 2012 Change% Instant noodles 1,153 1,038 11.07 Beverages 2,160 1,822 18.53 Instant food 55 64 ‐14.04 Others 22 22 2.68 Total 3,390 2,946 15.08 3Q 2012 3Q 2013 Instant Instant Food Others Food Others 2% 1% 2% 1% Beverages Beverages Noodles Noodles 63% 62% 3

  8. Slide 8: Turnover by Products

    Turnover by Products US$ million 1‐9/2013 1‐9/2012 Change% Instant noodles 3,146 2,911 8.06 Beverages 5,410 4,328 25.00 Instant food 154 178 ‐13.41 Others 103 62 66.08 Total 8,813 7,479 17.83 1‐9/2012 1‐9/2013 Instant Instant Others Food Food Others 1% Beverages 2% 2% 1% 58% Beverages Noodles 61% 36

  9. Slide 9: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 3Q 2013 3Q 2012 Change% Bowl 536 481 11.49 High end Packet 461 431 7.00 Mid end Packet 127 109 15.62 Snack Noodle & Others 29 17 74.73 Total 1,153 1,038 11.07 3Q 2013 3Q 2012 Snack Noodle Snack Noodle & & Mid end Mid end Others Others Packet Bowl Packet 2

  10. Slide 10: Instant Noodle Sales by Products

    Instant Noodle Sales by Products US$ million 1‐9/2013 1‐9/2012 Change% Bowl 1,513 1,398 8.21 High end Packet 1,225 1,181 3.80 Mid end Packet 334 286 16.40 Snack Noodles & Others 74 46 60.57 Total 3,146 2,911 8.06 1‐9/2012 1‐9/2013 Snak Noodle Snack Noodle & & Mid end Mid end Others Others Packet Pac

  11. Slide 11: Beverage Sales by Products

    Beverage Sales by Products US$ million 3Q 2013 3Q 2012 Change% Tea 752 562 33.81 Water 473 344 37.25 Juice 410 384 6.55 Carbonated drinks and Others 525 532 ‐1.32 Total 2,160 1,822 18.53 3Q 2012 3Q 2013 Tea CSD & Others Tea 31% 24% 35% CSD & Others 29% Water Juice Juice 19% Water 19% 21% 22% © 2013

  12. Slide 12: Beverage Sales by Products

    Beverage Sales by Products US$ million 1‐9/2013 1‐9/2012 Change% Tea 1,978 1,624 21.80 Water 981 785 24.97 Juice 1,176 1,030 14.16 Carbonated drinks and Others 1,275 889 43.42 Total 5,410 4,328 25.00 1‐9/2013 1‐9/2012 CSD & Others CSD & Others 21% Tea 23% Tea 37% 37% Juice Juice 24% 22% Water Water

  13. Slide 13: Gross Margin by Products

    Gross Margin by Products 3Q2012 39.55 38.39 40 % 3Q2013 34.07 32.58 35 31.00 29.77 31.38 31.32 30 25 20 15 10 5 0 Instant noodles Beverages Instant food Overall Change (ppt.) -1.23 2.69 -1.16 1.26 © 2013 Tingyi (Cayman Islands) Holding Corp. All rights reserved. 12

  14. Slide 14: Gross Margin by Products

    Gross Margin by Products 1-9/2012 38.37 37.43 40 % 1-9/2013 31.74 30.91 29.99 29.40 30.55 30.41 30 20 10 0 Instant noodles Beverages Instant food Overall Change (ppt.) -0.59 1.19 -0.94 0.50 © 2013 Tingyi (Cayman Islands) Holding Corp. All rights reserved. 13

  15. Slide 15: EBIT by Products

    EBIT by Products 3Q 2013 3Q 2012 US$’ 000 Change% (Restated) Instant noodles 138,621 134,405 3.14 Beverages 210,412 144,600 45.51 Instant food ‐3,733 2,601 ‐243.55 Others 7,863 6,098 28.96 EBIT 353,163 287,704 22.75 © 2013 Tingyi (Cayman Islands) Holding Corp. All rights reserved. 14

  16. Slide 16: EBIT by Products

    EBIT by Products 1‐9/2012 US$’ 000 1‐9/2013 Change% (Restated) Instant noodles 332,320 332,160 0.05 Beverages 359,141 479,086 ‐25.04 Beverages‐after excluding gain on 359,141 288,504 24.48 bargain purchase Instant food ‐10,414 3,014 ‐445.57 Others 32,792 16,067 104.08 EBIT 713,839 830,327 ‐14.03 EBI

  17. Slide 17: Profit

    Profit US$’ 000 3Q 2013 3Q 2012 Change% (Restated) Instant noodles 108,205 107,146 0.99 Beverages 172,004 103,658 65.93 Instant food ‐3,366 1,650 ‐304.00 Others 1,610 147 995.24 Profit 278,453 212,601 30.97 © 2013 Tingyi (Cayman Islands) Holding Corp. All rights reserved. 16

  18. Slide 18: Profit

    Profit US$’ 000 1‐9/2013 1‐9/2012 Change% (Restated) Instant noodles 262,891 258,032 1.88 Beverages 259,491 371,756 ‐30.20 Beverages‐after excluding gain on bargain purchase 259,491 181,174 43.23 Instant food ‐9,258 2,213 ‐518.35 Others 10,063 3,734 169.50 Profit 523,187 635,735 ‐17.70 Profit‐after

  19. Slide 19: Financial Position

    Financial Position As at 30/9/2013 As at 31/12/2012 (Restated) *ROA (Annualized) 11.73% 12.30% **ROE (Annualized) 19.06% 19.81% Current Ratio 0.76 0.70 Gearing Ratio ‐0.03 0.25 A/R Turnover /Days 9.53 7.69 Finished Goods Turnover/Days 10.61 12.11 At 30/9/2013, Cash and cash equivalents was US$1.588

  20. Slide 20: Material Price

    Material Price RMB/Ton Flour 3,250 Palm Oil 3,500 3,300 11,500 3,100 10,500 2,900 9,500 2,700 8,500 2,500 7,500 2,300 6,050 6,500 2,100 1,900 5,500 1,700 4,500 1,500 3,500 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 1Q/ 3Q/ 06 07 07 08 08 09 09 10

  21. Slide 21: Instant Noodle Market Share

    Instant Noodle Market Share-by Volume Instant Noodle Market Share-by Value 60.0 % 70.0 Tingyi 康師傅控股 % Tingyi 康師傅控股 57.4 57.1 57.1 56.7 56.5 56.5 56.0 60.0 54.9 50.0 44.9 45.7 54.1 44.0 43.1 43.3 44.0 41.4 42.7 57.1 56.3 55.7 56.0 56.2 56.3 55.6 41.1 50.0 54.2 43.9 44.2 40.0 42.1 42.3 42.9 40.8 41.8

  22. Slide 22: RTD Tea Market Share

    RTD Tea Market Share‐by Volume RTD Tea Market Share‐by Value 60.0 60.0 % Tingyi 康師傅控股 % 54.9 Tingyi 康師傅控股 5 6 .1 5 3 .4 5 4 .1 5 3 .6 51.6 5 6 .3 54.4 50.3 50.0 47.8 4 9 .7 5 3 .4 4 8 .3 47.4 50.0 4 6 .7 4 7 .2 45.6 50.9 50.8 5 2 .2 4 6 .3 5 1 .2 45.2 5 1 .5 47.8 42.4 41.8 4 7 .7 4 7 .4 4 7 .6 46.0

  23. Slide 23: RTD Tea (no milk) Market Share

    RTD Tea (no milk) Market Share-by Volume RTD Tea (no milk) Market Share-by Value 70.0 70.0 % % Tingyi 康師傅控股 Tingyi 康師傅控股 57.3 57.1 58.0 60.0 60.0 57.1 56.5 56.1 55.9 55.1 54.5 53.8 52.5 57.5 53.1 52.2 52.0 58.4 57.1 51.1 56.7 56.8 50.7 55.6 55.2 53.0 53.4 50.0 47.5 53.6 53.3 53.5 50.0 46.8 52.0 51.9

  24. Slide 24: Diluted Juice Drinks and Bottle Water Market Share

    Diluted Juice Drinks (5-39% juice content) Bottle Water Market Share-by Volume Market Share-by Volume 30.0 40.0 Tingyi 康師傅控股 Tingyi 康師傅控股 2 5 .7 2 5 .9 33.6 33.5 33.8 2 5 .3 35.0 33.2 2 5 .1 2 4 .1 31.7 32.1 Player A 31.9 31.7 32.4 25.0 2 3 .6 2 2 .7 30.7 3 0 .5 2 2 .5 2 2 .5 29.9 30.1 3 0 .0 2 2 .7

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

    Nation‐Wide Distribution Network and Production Centre a) Distribution Network As at 30/9/2013 As at 30/6/2013 As at 31/12/2012 Sales Office 579 580 571 Warehouse 87 89 95 Wholesaler 33,530 33,383 32,424 Direct Retailer 110,208 109,088 107,131 b) Production Lines Noodles 229 206 215 Beverage 408 401

Tingyi (Cayman Islands) Holding — Q3 2013 Earnings Presentation on 6ix