Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — Investor Day (August 2011)
27 slides from Fraser & Neave's investor day presentation, Aug 26, 2011
Slide 1: F&N 2011 Corporate Day
Fraser and Neave, Limited F&N 2011 Corporate Day 26 August 2011 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
Slide 2: Exceptional Performance - 3rd Quarter FY2011 Results
Fraser and Neave, Limited Exceptional Performance 3rd Quarter FY2011 Results Healthy set of financial results Strongly backed by Food & Beverage ($ ’million) 9M2011 9M2010 Change Revenue 4,363.5 4,149.7 + 5.2% PBIT 1 802.1 812.9 - 1.3% Profit after tax2 751.5 640.2 + 17.4% Attributable Profit2 572.7
Slide 3: 5 year revenue and PBIT growth
5 year revenue growth F&B remained largest revenue contributor Revenue 4,364 $ ‘m 3,383 3,685 4,608 4,823 5,146 5,697 (9mths) 5-Year CAGR 11% Others Properties Properties F&B 29.0% FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 9M2011 Column chart represents Group Revenue by business unit in $ Area chart
Slide 4: 5 year Attributable Profit growth; strong balance sheet
5 year Attributable Profit growth Properties remained largest profit contributor Attributable 444 Profit $ ‘m 293 315 373 430 357 728 (9mths) 5-Year CAGR 20% Properties 59.3% Others Properties F&B FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 9M2011 Column chart represents Group Revenue by business unit
Slide 5: Strategic initiatives and FY2011 developments
Strategic initiatives • Grow F&B; rebalance profit contribution • Invest for future growth • Intensify capital recycling Slide 9 FY2011 Strategic developments Group Capital > Issued $300m 5- and 7-year bonds at 2.48% and management 3.15% respectively Food & Acquisitions > Strengthened South Pacific
Slide 6: FY2011 Strategic developments - Properties
FY2011 Strategic developments Development Capital > Formalised strategic joint venture with Sekisui Property management House to redevelop A$2b-Central Park project; shorter development cycle and early recycling of capital > Quick turnaround of Singapore development pipeline ; latest project, Seastr
Slide 7: Strategy on track; financial objectives
Strategy on track Invest in future Objective is to provide superior return to shareholders with focus on F&B and Properties Optimise Rebalance capital portfolio allocation Slide 13 Financial objectives on track EPS Growth - Ave 10% pa growth Increase recurring income Capital returns - Increase F&B -
Slide 8: Asia Pacific, An Important Growth Engine For World GDP
Asia Pacific, An Important Growth Engine For World GDP • Fastest growing region • Long term outlook remains strong – Rising GDP, high employment – Less debt, more favorable demography – Growing population; large young population – Urbanisation trend continues – Growing middle class with rising afflu
Slide 9: Breweries portfolio of brands and geographic footprint
Breweries … portfolio of strong international, regional and local brands Region Key Brands Position in 2010 Southeast Asia Tiger, Heineken, Anchor, ABC (Singapore, Indonesia, Malaysia, No. 2 in Stout , Guinness, Baron’s, Vietnam, Cambodia, Laos and Southeast Asia Thailand) Larue, Bintang No. 1 in th
Slide 10: Breweries Market focus: Indonesia
Breweries Market focus: Indonesia FACT SHEET – South & South-East Asia • Strategy: INTRA-MARKET GROWTH (Singapore, Malaysia, Indonesia and Sri Lanka) – Continue to drive market development, increasing - 12 breweries brand penetration, influencing consumption and expanding sales and distribution netw
Slide 11: Breweries Market focus: China
Breweries Market focus: China FACT SHEET – North Asia • Strategy: INTRA-MARKET GROWTH; FOCUS ON (China and Mongolia) PREMIUM BRANDS - 3 breweries – Exited low margin beer segment to focus on growing premium beer brands, Tiger and Heineken; improve - Leading position Hainan margins and price - Strong
Slide 12: F&B Footprint of Non-Beer (Soft Drinks and Dairies)
F&B Footprint of Non-Beer (Soft Drinks and Dairies) Expanding our Non-Beer footprint, here and abroad Non-Beer Malaysia (Soft Drinks & Dairies) Singapore (Soft Drinks2 & Dairies) Thailand (Soft Drinks & Dairies) China (Dairies1) Indonesia (Soft Drinks2) Vietnam (Dairies3) 1 29.5% stake in China Dair
Slide 13: Soft Drinks Focus on driving volume growth
Soft Drinks Focus on driving volume growth • Target – Maintain FY2009 volume in Malaysia — Volume driven by core brands — Defend leading position in Malaysia and Singapore Soft Drinks Volume (unit cases) Announced non-renewal on 18 Feb 2009 New products, export and organic growth to replace KO’s vol
Slide 14: Soft Drinks New Markets
Soft Drinks New Markets Focus on ASEAN; large growing population of ~550m - Increase consumption of healthier beverage ( ) NARTD market in litres Thailand Vietnam (6.2b) (1.5b) Philippines Malaysia (8.2b) (1.5b) Singapore (0.5b) Indonesia (17.5b) Slide 27 Soft Drinks Consumption patterns Per capita
Slide 15: Dairies Growth intact; Food & Beverage Summary
Dairies Growth intact • Input cost remains volatile TOTAL MILK (per capita consumption litres) • Inflationary pressure affecting consumer’s spending power • Continuing population growth, rising demand from developing countries, trade liberalization, and continued growth in JUICES (per capita consump
Slide 16: Properties - The Fraser Collection
Properties The Fraser Collection CHINA Beijing, Changzhou, Chengdu, KOREA Nanjing, Shanghai, Shenzhen, Seoul UNITED KINGDOM INDIA Suzhou, Tianjin, Wuhan and Wuxi - Serviced Residences Edinburgh, Glasgow and London Bangalore, Chennai and - Homes • 2 properties, 450 rooms - Homes New Delhi • Under dev
Slide 17: Development Property and Commercial Property: Optimise capital
Development Property Optimise capital • Focus on Singapore, China and Australia – Fast turnover of land bank – Disciplined land banking approach; low land cost for Singapore and overseas development pipeline • Estimated development pipeline of $10 billion1 1 includes unrecognised revenue from pre-so
Slide 18: Commercial Property Continue to build pipeline asset
Commercial Property Continue to build pipeline asset Strong pipeline assets of about $2 billion Estimated NLA Resi Retail Office Status (sqf) Current portfolio Bedok Pt 80,985 Ready The Centrepoint 332,261 Ready Alexandra Pt 198,436 Ready Development pipeline Retail: 207,000 Retail: end- Changi Pt H
Slide 19: Commercial Property Changi City Point
Commercial Property Changi City Point Location: Changi Business Park Project type: Integrated business park facilities with retail and hotel Site area: 505,970sqf GFA: Up to 1.3m sqf - Business Park:760,000sqf - Retail: 303,000sqf - Hotel: 202,000sqf Acquired in: FY2009 Est. completion date: - Retai
Slide 20: Group Summary and Thank you
Group Summary • Proven strategies in place for a sustainable long-term growth – Committed to diversified business model – Strong brands and extensive footprint • Well placed to ride out downturn Slide 39 Fraser and Neave, Limited Thank you Analyst contact: Jennifer Yu Investor Relations Fraser and N
Slide 21: Appendices - Multi-business, multi-sector
Appendices - Introduction of Fraser and Neave, Limited Slide 42-45 - 9M2011 Financials - Beer - 9M2011 Revenue by Geography Slide 46 - 9M2011 PBIT by Geography Slide 47 - Properties - Singapore Project currently under development Slide 48 Land bank Slide 49 - China Project currently under developmen
Slide 22: Food & Beverage Business and Properties Business
Food & Beverage Business FY10 Revenue: S$5,697m FY10 PBIT: S$1,071m F&N FY10 AP: S$ 584m F&B FY10 Rev: S$3,309m Food & F&B FY10 PBIT: S$ 457m Beverage F&B FY10 AP: S$ 180m Non-beer Beer F&B FY10 Rev: S$3,309m 51% 49% F&B FY10 PBIT: S$ 457m 34% 66% F&B FY10 AP: S$ 180m 32% 68% Soft Drinks Dairies Mai
Slide 23: Publishing & Printing Business; Beer Revenue by Geography
Publishing & Printing Business • Acquired in 2000, Times Publishing Group has a global network spanning Southeast Asia, HK, China, Japan, Australia, Europe and the USA • Strategic review of this business, conducted in 2008, was halted due to poor market conditions and difficulties encountered by pot
Slide 24: Beer 9M2011 PBIT by Geography; Singapore development projects
Beer 9M2011 PBIT by Geography • Indochina Stands As Largest Profit Generator • Strong Contribution from Indonesia • Affected by higher provision for share-based compensation expenses 9M2011 9M2010 % ($’ Million) ($’ Million) Change South & South East 80.7 58.9 + 37% Asia Oceania 64.5 50.5 + 28% Othe
Slide 25: Properties Singapore residential land bank
Properties Singapore residential land bank Total est. Effective Total est. no. saleable Land cost Land bank interest of units area ($ psf) (‘m sqf) Upper Serangoon site1 50% 494 0.49 320 Punggol Central site 2 331/3% 949 1.36 680 Flora Drive 100% 444 0.40 325 Punggol Way/Punggol Field3 80% 691 0.81
Slide 26: Properties Overseas development land bank - China
Properties Overseas development land bank - China Total est. Effective Total est. Land cost Land bank saleable interest no. of units (RMB psf) area (‘m sqf) Shanshui Four Seasons 76% 5,360 7.3 145 (Ph 2 – Ph 5), Shanghai Baitang One, Suzhou (Ph 2 – Ph 4) 100% 2,852 4.6 233 Residential 8,212 11.9 Che
Slide 27: Overseas development land bank - Australia/NZ and UK
Properties Overseas development land bank – Australia/NZ Total est. saleable Effective Total est. no. Land cost Land bank area interest of units (A$ psf) (‘m sqf) Central Park (CUB), Sydney 75.0% 1,923 2.001 83 Killara Pavillions, Sydney 75.0% 99 0.10 149 Morton, Sydney 75.0% 550 0.59 39 RRCS site,