Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2015 Earnings Presentation
24 slides from Fraser & Neave's earnings presentation, 2015
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: FY2015 Performance Highlights
FY2015 Performance Highlights Executing on our regional expansion strategy FY2015 earnings impacted by a) Marketing investments in (i) new product launches and (ii) new markets ($13 million) b) Adverse foreign exchange effect c) Lost sales and higher operating costs due to floods in Malaysia in 1Q20
Slide 4: Key financial metrics FY2015
Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $2,103.8 $131.6 ▲ 0.5% ▼ 11.2%1 EBIT margin Gearing (%) (millions) 6.3% $865 (net cash) ▼ 82bps1 ▲ $647m Earnings per share (basic)2,3 Dividend per share4 (cents) (cents) 4.4 5.0 ▼ 25.4%1 - 1 Excludes a one-off valuation gain of
Slide 5: Revenue by Business Segment
Supported by volume growth in Dairies; revenue impacted by forex and lost sales from floods $2,104m Revenue by Business Segment FY2015 Revenue ($) by Business Segment (%) $2,093m +0.5% Publg Dairies & 54% Print 16% $2,104m $1,123m +2.2% $1,099m Beverages -0.4% 30% $639m FY2015 Revenue $642m by Geogr
Slide 6: Revenue | Beverages
Revenue | Beverages Revenue flat against last year; adversely affected by weaker Ringgit and lost sales from Malaysia floods Beverages: Soft Drinks (-%; +5% in constant Volume Growth (Key Brands) (%) currency) 10% - Malaysia 0% - Volume flat against last year, despite lost sales from -6% floods -1%
Slide 7: Revenue | Dairies
Revenue | Dairies Revenue up 2%, supported by volume growth; weaker Ringgit impacted revenue Dairies Malaysia (-4%; +2% in constant currency) Volume Growth (%) - Effective brand building and trade management activities contributed to continuing growth of F&N, F&N TEAPOT and GOLD COIN canned milk; vo
Slide 8: Revenue | Publishing & Printing
Revenue | Publishing & Printing • Education Publishing continued to diversify and grow its customer base • Strong overseas sales from its key markets of the US and the UK • Recovery in textbook sales in Singapore • Improved sales in Books and Magazines Distribution, mainly in Singapore, Hong Kong an
Slide 9: EBIT by Business Segment
Profit growth impeded by high brand investment cost in new markets and weak foreign currencies, despite double-digit growth in Dairies FY2015 EBIT EBIT by Business Segment ($) by Business Segment (%) FY2014 EBIT -11% Margin Publg & 10.4% Dairies 7.1% Print FY2014 6.3% 52% EBIT 6.1% -11% $148m 6.0% 5
Slide 10: EBIT | Beverages
EBIT | Beverages Regionalisation plan on track; entered Vietnam, Myanmar, Thailand and Indonesia Beverages: Soft Drinks (-43%; -38% in constant EBIT currency) − Aggressive regional expansion, increasing market -26% penetration in SEA $69m -43% -26% -8% $52m − Brand investment cost of $13 million in
Slide 11: EBIT | Dairies
EBIT | Dairies Earnings surged 21% (+31% in constant currency); Margin expanded on double-digit growth in Malaysia and Thailand Dairies: Malaysia (+33%; +41% in constant currency) EBIT +21% - Driven by lower input costs and continuous realised production cost savings -nm- +34% Thailand +33% - Weaker
Slide 12: EBIT | Publishing & Printing
EBIT | Publishing & Printing − Education Publishing continued to perform strongly − Retained Singapore and Hong Kong volumes and growing our presence in the US and UK − Publishing & Printing recorded a loss of $15 million arising from lower print revenue, accelerated depreciation charges (due to rat
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Dividend of 5.0 cents per share3 Key Financial Ratios FY2015 FY20141 • Dividend payout ratio of 63% (including FY2015 earnings from Myanmar Brewery Limited (“MBL”) Total Equity2 $2,556m $2,002m • Dividend policy unc
Slide 14: Key Developments: Investing for Growth
KEY DEVELOPMENTS: Investing for Growth
Slide 15: Strengthening market positions in primary markets
Strengthening market positions in primary markets Retained Market Leadership Positions in Multiple Categories and Markets Business Key Brands Region Position (1) Malaysia No.1 beverage player Soft Drinks No.1 in isotonic segment; Singapore No. 2 beverage player Malaysia No.1 canned milk No.1 in past
Slide 16: Building New Growth Pillars In Primary Markets
Strengthening market positions in primary markets Building New Growth Pillars In Primary Markets THAILAND: UHT MILK MALAYSIA: UHT MILK MALAYSIA: 100PLUS Berry, OISHI, RANGER F&N MAGNOLIA FARMHOUSE UHT milk 100PLUS Berry, OISHI, RANGER Ginkgo Plus Fresh and Low Fat Milk 1. 100PLUS: Berry Plain, White
Slide 17: Building New Growth Pillars In Primary Markets
Strengthening market positions in primary markets Building New Growth Pillars In Primary Markets SINGAPORE, MALAYSIA SINGAPORE, MALAYSIA SINGAPORE COCO LIFE EST Cola F&N ICE MOUNTAIN 100% Coconut Water 325ml, 500ml and 1.5L Sparkling Water 330ml 2 Flavours: Lemon and Grapefruit 375ml 17 Full year en
Slide 18: New Packaging
Strengthening market positions in primary markets New Packaging SINGAPORE MALAYSIA SINGAPORE and MALAYSIA 100PLUS 100PLUS F&N Sparkling Drinks Limited Edition Packaging New sleek cans New sleek cans Official Isotonic Drink of 325ml 325ml the 28th SEA Games 18 Full year ended 30 September 2015 11/05/
Slide 19: Long-term contract with Nestle secured
Strengthening market positions in primary markets SINGAPORE, MALAYSIA, THAILAND : LONG-TERM CONTRACT WITH NESTLE SECURED TERM YEARS CONTRACT WITH NESTLE 22 CARNATION IS THE NO. Rights to CARNATION, BEAR BRAND, BEAR BRAND GOLD, IDEAL and MILKMAID in Thailand, Singapore, Malaysia, Brunei, Cambodia and
Slide 20: Investing for future growth: Malaysia, Thailand
Strengthening market positions in primary markets MALAYSIA, THAILAND : INVESTING FOR FUTURE GROWTH THB MILLION 300 NEW FILLING AND PACKAGING LINE IN ROJANA, THAILAND; OPERATIONAL BY END-2015 RM MILLION 100 EXPANSION IN EAST MALAYSIA; NEW SOFT DRINKS PLANT, DOUBLING CAPACITY; OPERATIONAL BY 2021 Roja
Slide 21: Overseas expansion
Overseas expansion THAILAND (SOFT DRINKS), VIETNAM, MYANMAR, INDONESIA: INVESTING FOR FUTURE GROWTH Thailand − Partnership with ThaiBev − Launched 100PLUS as functional carbonated soft drinks − Largest sampling in Thailand Vietnam, Myanmar − Branch office in Myanmar and rep office in Vietnam − Condu
Slide 22: Summary
SUMMARY
Slide 23: Summary
Summary • Maintained leading positions in key markets • Focus on • Strengthening our portfolio: Marketing and product innovation, and M&A • Focusing resources on winning in priority categories, brands and markets • Building on/identifying strategic partnerships and extracting synergistic opportuniti
Slide 24: 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 11/05/2017 24