Carlsberg Brewery Malaysia Bhd. · MYX:CARLSBG
Carlsberg Brewery Malaysia Bhd — FY2023 Earnings Presentation
34 slides from Carlsberg Brewery Malaysia Bhd's earnings presentation, Feb 7, 2024
Slide 1: Financial Results Q4/FY23 Analyst & Press Briefing
FINANCIAL RESULTS Q4/FY23 Analyst & Press Briefing Wednesday, 7 February 2024
Slide 2: FY23: Revenue -6%, Net Profit +5%
Q4FY23 vs. Q4FY22 & FY23: Revenue -6%, Net Profit +5% FY23 vs FY22 Q4FY23 FY23 Results (RM million) (RM million) Q4FY23 & FY23: Y-O-Y Y-O-Y Lower revenue due to weak consumer sentiment as well Revenue 580.5 2.260.9 as shorter timing of 2023 CNY. -5.3% -6.3% The stronger earnings were due to absence
Slide 3: Lower performance due to subdued discretionary spending and shorter CNY
FY23 vs. FY22 Lower performance due to subdued discretionary spending and shorter timing of CNY 2023 -7.1 % -4.3 % Malaysia – Revenue Singapore – Revenue Sri Lanka – Higher share of profit of RM26.8 million in FY23 due to improved RM1.6bil RM650.9mil business performance and strengthening of the Sri
Slide 4: Proposed Final Dividend of 31 sen
Proposed Final Dividend of 31 sen Q4FY23 Q4FY22 FY23 FY22 EARNINGS PER SHARE 27.48 sen 19.66 sen 108.99 sen 103.70 sen DIVIDEND PER SHARE 31.00 sen* 25.00 sen 93.00 sen 88.00 sen PAYOUT RATIO 113% 127% 85% 85% * Equivalent to a total payout of RM94.8million 4
Slide 5: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 6: Strengthen Mainstream Core Beer
2HFY23 vs. 2HFY22 Strengthen Mainstream Core Beer Boosting Brand Equity and Creating Memorable Consumer Moments April – Dec May – Sept May – Oct July – Aug Aug – Sept Raikan Kebanggaan #BestWithCarlsberg Carlsberg Golf Classic Carlsberg Real Spicy Real Smooth Sabah & Sarawak x Liverpool FC 6
Slide 7: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 8: Step Up In Premium
2HFY23 vs. 2HFY22 Step Up In Premium Elevating the Premium Experience Through Innovation Oct Oct Nov – Dec Nov – Dec Nov – Feb 2024 New Packaging Launch International Stout An Extraordinary Trip Limited Edition Design of Month To Paris with 1664 1664 PRESTIGE Brooklyn Pilsner 8
Slide 9: Enter into A New Partnership with Sapporo
DECEMBER 2023 → JANUARY 2024 Enter into A New Partnership with Sapporo A Fruitful Partnership with Asahi Super Dry for 10 years+ 9
Slide 10: Consumption Slowdown, Shorter Timing of Chinese New Year Celebration
Consumption Slowdown, Shorter Timing FY23 vs. FY22 of Chinese New Year Celebration -8% in MAINSTREAM sales -15% in PREMIUM sales • Lower sales due to weaker consumption as a result of a softer market, and shorter timing of 2023 CNY • Continue to invest in consumer-facing campaigns to regain and driv
Slide 11: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 12: Accelerate AFBs and Grow Beyond Beer
2HFY23 vs. 2HFY22 Accelerate AFBs AND GROW BEYOND BEER Spearheading AFB Category & Boosting Brand Awareness Sept – Oct Aug – Oct Dec Somersby Apple Month Sampling Drive Launch of Somersby Apple 0.0 12
Slide 13: Introduce SBY 0.0 in SG & New Variant Launch
FY23 vs. FY22 Introduce SBY 0.0 in SG & New Variant Launch in conjunction with 2024 CNY 2% in ALCOHOL-FREE BREW sales • CNY limited edition Somersby Mandarin Orange 0.0 drove higher sales in Q4FY23 and helped lift full year volume. • In SG, Somersby Apple 0.0 was launched in December. • In our commi
Slide 14: Took Home 4 Awards from Putra Brand Awards 2023
Took Home 4 Awards from Putra Brand Awards 2023 Carlsberg brand won Platinum for 3rd year in a row 14
Slide 15: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 16: Top Performing Brand on eCommerce
Top Performing Brand on eCommerce FY23 Despite Decline in Ecommerce Sales Top 5 Brands in Groceries on major eCommerce platforms in MY and SG 16
Slide 17: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 18: OnePlan Goes Live in June 2023
OnePlan Goes Live in June 2023 FY23 Benefits of OnePlan ✓ Time reduction in data analytics ✓ Improved insights ✓ Better data collection ✓ Enhanced Risk Management 18 A new generation planning tool to harmonise Demand and Supply Planning process Malaysia operation is the pilot market for OnePlan, bef
Slide 19: RM108mil CapEX for Brewery Upgrade Completed
FY23 RM108mil CapEX for Brewery Upgrade Completed A positive step forward for our Group's sustainability efforts 5 benefits 1
Slide 20: RM92mil CapEX allocated for Brewing Transformation in 2024
FY24 RM92mil CapEX allocated for Brewing Transformation in 2024 A NEW Canning line and Beer filtration plant for higher production flexibility and lower energy and water consumption CANNING LINE BEER FILTRATION PLANT 2
Slide 21: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 22: FY23: Improved Gender Diversity in Both Countries
FY23: Improved Gender Diversity in Both Countries Malaysia Singapore Female Ratio 32% Female Ratio 34% (+4%pts vs FY22) (+1%pts vs FY22) At Carlsberg Malaysia, FEMALE makes up: 67% 29% of Management Team of Board of Directors 22 (Unchanged against FY22)
Slide 23: Graduates' Choice Award
GRADUATES’ CHOICE AWARD Carlsberg voted as "2024 Graduates' Choice of Employers to Work For“ for 4 consecutive years Carlsberg Malaysia won the award with an impressive 464,220 votes! Continue to strengthen company employer branding and benchmarking with companies in Malaysia Market
Slide 24: SAIL'27
FY23: Strategy Review SAIL’27 OUR PORTFOLIO Step up in Strengthen Accelerate mainstream alcohol-free brews CHOICES premium core beer and grow Beyond Beer OUR EXECUTION Excel at point Master digital, Manage supply EXCELLENCE of purchase data and processes chain end-to-end Purpose & OUR WINNING perfor
Slide 25: Roadmap to Net Zero: -33% reduction in carbon intensity
Roadmap to Net Zero: -33% reduction in carbon intensity [kg CO2e/hl] in 2022 vs 2015 Proportion of greenhouse gas emissions in value chain Malaysia 2022 24% 9% 44% 10% 13% Agriculture & Breweries Packaging Transportation Cooling Processing & Distribution CO2 Development 2015 – 2022 -44% -54% -26% -2
Slide 26: FY23: On track to meet ESG targets
FY23: On track to meet ESG targets 2.8 94% 3.2hl/hl 0 242 Carbon emission Bottles and cans Water usage Drink driving Days of ZERO Lost- kgCO2e/hl collected and recycled per hl of beer Incidents Time Accidents (3.1 kgCO2e/hl in FY22) (92% in FY22) (3.4 hl/hl in FY22) (0 in FY22) (1,452 days in FY22)
Slide 27: Over RM20mil raised via Top Ten charity shows
JUNE – JANUARY 2024 Over RM20mil raised via Top Ten charity shows REVITALISE TOP TEN ✅ - Education funds of RM20.48mil raised for 10 schools SJKC SIN YA, PENANG RAISED: RM7,788,880 LAHAD DATU MIDDLE SCHOOL RAISED: RM1,111,111.11 SJKC KG BARU AMPANG RAISED: RM831,818 SJKC SUNGAI JAN RAISED: RM1,361,0
Slide 28: Corporate & ESG Awards
Corporate & ESG Awards Highest Return-On-Equity’ at The UN Global Compact Network National Annual Corporate Edge Billion Ringgit Club 2023 M’sia & Brunei’s Forward Faster Report Awards (NACRA) 2023 • 4th consecutive year of highest Sustainability Awards 2023 - 2022 IAR: Platinum Excellence award ROE
Slide 29: Brewing Prosperity Together
~) ave SS ITE BREWING PROSPERITY<TOGETHER> ».
Slide 30: Brewing Prosperity Together
DECEMBER - FEBRUARY 2024 Brewing Prosperity Together VIBRANT AND IMPACTFUL CHINESE NEW YEAR EXECUTION CNY limited-edition festive can in collaboration with Chinese artist launched in both MY & SG In MY, executed activation in both KL and Penang Roll-out of integrated marketing campaign across all sa
Slide 31: Limited Edition 1664 Poker Set
Limited Edition 1664 Poker Set DECEMBER – FEBRUARY 2024 CELEBRATE THIS CHINESE NEW YEAR WITH OUR LIMITED EDITION 1664 POKER SET Reinforce brand presence during CNY Poker set fully redeemed almost 4 weeks ahead of the end of the campaign period
Slide 32: Somersby Mandarin Orange 0.0
DECEMBER – FEBRUARY 2024 Somersby Mandarin Orange 0.0 CNY limited edition cans garnered KAM – listen to this radio ad which is encouraging sales available on ! WEL-KAM PROSPERTIY WITH OUR CNY LIMITED EDITION CANS CNY limited edition cans sold out on Shopee within 7 weeks of campaign Curated JYNNS x
Slide 33: Sapporo Premium Beer
JANUARY 2024 Sapporo Premium Beer Officially debut our locally brewed Sapporo in MY market in January 2024 Sapporo Team makes first official visit in January Successful listing in MY & SG outlets Follow us @SAPPOROMY TASTE THE ICONIC FIRST BEER OF JAPAN TODAY 34
Slide 34: 2024 Outlook
2024 Outlook ➢ The Group remains mindful of the prevailing uncertainty in the economic landscape due to: o High interest rates o Continuing inflationary pressures; o Currency fluctuations; and o Impacts of SST. ➢ The Group will remain vigilant on cost control management while continuing to reinvest
Carlsberg Brewery Malaysia — FY2023 Earnings Presentation on 6ix