Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — FY2024 Earnings Presentation
44 slides from Fraser & Neave Holdings Bhd's earnings presentation, Nov 6, 2024
Slide 1: FY2024 Full Year Financial Results Briefing
FY2024 FULL YEAR FINANCIAL RESULTS BRIEFING
Slide 2: CEO Presentation - Lim Yew Hoe
CEO PRESENTATION LIM YEW HOE
Slide 3: Welcome to Fraser & Neave Holdings Bhd
WELCOME TO FRASER & NEAVE HOLDINGS BHD
Slide 4: Important Information
IMPORTANT INFORMATION 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 actua
Slide 5: Group Financial Highlights
REVENUE OPERATING PROFIT PROFIT PROFIT BEFORE TAX AFTER TAX RM RM RM RM 5,245.6 MILLION 709.5MILLION 697.0MILLION 544.3 MILLION 4.9% 10.4% 11.6% 0.4% EARNINGS PER NET ASSET PER EFFECTIVE TAX RATE GEARING RATIO SHARE (BASIC) SHARE RM FY2024 21.9% 148.2 sen 9.75 21.3% F&NHB -8.7 P.P 1.7 sen 63 sen -1.
Slide 6: Key Drivers
KEY DRIVERS Diversified Brand Successful Portfolio, Strong Festive Lower Supply Chain Promotional Businesses, Demand Input Costs Savings Activities Geographical Presence
Slide 7: F&NHB Group FY2024 Financial Highlights
FY2024 FINANCIAL HIGHLIGHTS F&NHB GROUP GROUP GROUP REVENUE OPERATING PROFIT RM Million RM Million Growth % 9.4 12.1 (2.1) 1.0 4.9 Growth % (6.9) 64.7 37.3 (27.9) 10.4 RECORD OPERATING REVENUE PROFIT RM RM 5.25 709.5 5,245.6 5,001.4 642.9 709.5 BILLION MILLION 224.9 209.3 207.5 1,332.9 1,352.4 1,331
Slide 8: Profit after tax (PAT) improvement
Profit after tax (PAT) improvement RM Million 167 17 Growth % 32 53 11 26 +0.4% 15 32 542 544 PAT FY2023 Business-as-usual Integrated dairy Forex losses One-off non- HIgher net interest Higher tax on higher Expiration of BOI Withholding tax on PAT FY2024 PBIT farm start-up-costs operating items (i)
Slide 9: F&B Malaysia Operational Highlights
OPERATIONAL F&B MALAYSIA HIGHLIGHTS: F&B MALAYSIA F&B MALAYSIA REVENUE OPERATING PROFIT RM Million RM Million Growth % 6.9 11.3 (2.5) (1.7) 3.5 Growth % 18.2 92.7 176.1 (5.5) 49.5 2,950.8 2,851.5 305.4 204.3 92.9 787.7 83.3 713.3 762.6 707.6 748.8 730.0 70.4 73.4 681.8 670.5 55.8 59.0 48.2 26.6 Q1 Q
Slide 10: F&B Thailand Operational Highlights
OPERATIONAL F&B THAILAND HIGHLIGHTS: F&B THAILAND F&B THAILAND REVENUE OPERATING PROFIT RM Million RM Million Growth % 6.5 10.4 0.5 6.2 5.7 Growth % 74.9 45.9 2.0 (13.8) 19.8 THB THB Growth % 12.9 13.2 (1.5) 4.1 6.7 Growth % 85.4 49.7 0.0 (15.5) 21.0 2,146.2 2,291.0 449.9 371.8 125.9 116.9 120.7 105
Slide 11: 33 Sen Per Share Proposed Final Dividend
PROPOSED FINAL DIVIDEND 33 SEN PER SHARE Subject to shareholders’ approval at the forthcoming Annual General Meeting TOTAL DIVIDEND PER SHARE INTERIM FINAL SPECIAL DIVIDEND DIVIDEND DIVIDEND 30.0 33.0 - 63.0 PER SHARE DIVIDEND SEN + SEN + = SEN 2023: 27.0 SEN 2023: 33.0 SEN 2023: 17.0 SEN 2023: 77.0
Slide 12: Major Capex 2024
RM MAJOR 1,426* CAPEX 2024 MILLION RM RM 179.5 MILLION 48.5 MILLION DAIRY PLANT IN CAMBODIA CSD AND DRINKING WATER LINE Suvannaphum Special Butterworth Economic Zone, Kandal DAIRY FARM IN GEMAS Plant (new) Negeri Sembilan Groundbreaking ceremony in Operational September 2024. in 2026 To be completed
Slide 13: Groundbreaking in SEZ Cambodia
GROUNDBREAKING IN SEZ CAMBODIA
Slide 14: Major Capex 2024
MAJOR RM 12.3 CAPEX 2024 MILLION RM 18.5 MILLION STERILISED CAN MILK FILLING & PACKING LINE SOLAR PV PROJECTS Pulau Indah Plant (PHASE 2) Shah Alam, Pulau Indah and Rawang Operational in 2025 Completion in 2025
Slide 15: F&B Malaysia Marketing Highlights
MARKETING HIGHLIGHTS F&B MALAYSIA
Slide 16: New Offerings in FY2024
NEW OFFERINGS IN FY2024 ice lemon Ga (ex fii SOY MILK SPRINGS FLAXSEED OIL _—o
Slide 17: Widening Our Healthier Choice Range
WIDENING OUR HEALTHIER CHOICE RANGE
Slide 18: Nurturing Sports Talents Today and Beyond
NURTURING SARAWAK 2024 SPORTS TALENTS TODAY AND BEYOND • KIPID100 MALAYSIA • SRIXON to advance junior golf • GOLD Sponsor of SUKMA XXI Sarawak 2024 and PARA SUKMA XXI Sarawak 2024 • Malaysia Open 2024
Slide 19: Canned Milk Marketing Campaigns
TEAPOT On- F&N “Mengisi Premise (OP) Hati Setiap Hari” branding CANNED MILK MARKETING CAMPAIGNS TEAPOT Spill the Tea
Slide 20: Carnation Marketing Highlights
Terima KaC Campaign in conjunction with Parents’ Day Collaboration with Shin Ramyun CARNATION MARKETING HIGHLIGHTS CNY Campaign
Slide 21: Magnolia Key Initiatives
MAGNOLIA KEY INITIATIVES Magnolia + Gardenia Magnolia Deepavali contest
Slide 22: Sri Nona's Key Initiatives
Collaboration with more KOL SRI NONA’S KEY INITIATIVES Collaboration with the famous KHAIRUL AMING Hari Raya Activation “A Majestic Feast in the Year of the Dragon, with Healthier Flavours of Lee Shun Hing
Slide 23: New Packaging Launch
NEW PACKAGING LAUNCH
Slide 24: F&B Thailand Marketing Highlights
MARKETING HIGHLIGHTS F&B THAILAND
Slide 25: Magnolia Engages with Students
MAGNOLIA ENGAGES WITH STUDENTS
Slide 26: Carnation Reaches Out to Operators
CARNATION REACHES OUT TO OPERATORS SBC+EXTRA OPERATOR CAMPAIGN REWARDS CAMPAIGN
Slide 27: Carnation Drives In-Home Usage
CARNATION DRIVES IN-HOME USAGE
Slide 28: Teapot Appeals to Consumers & Operators
TEAPOT APPEALS TO CONSUMERS & OPERATORS
Slide 29: Bear Brand Targets Young Adults
BEAR BRAND TARGETS YOUNG ADULTS
Slide 30: Nutri Well soy milk new launch
Slide 31: Our Awards and Accolades
OUR AWARDS AND ACCOLADES HR ASIA BEST COMPANIES THE BUILDING TRUST PUTRA BRAND NACGSA 2024 TO WORK FOR AWARDS 2023 AWARDS 2023 Best Employer to Work For Winner Gold Top 50 Excellence FBM Mid 70 Index Non-Alcoholic Beverage Award for companies Fraser & Neave Holdings Bhd 100PLUS listed on Bursa Malay
Slide 32: F&N AgriValley Project Wholesome
F&N AGRIVALLEY PROJECT WHOLESOME
Slide 33: F&N's Integrated Dairy Farm
F&N’S INTEGRATED DAIRY FARM VISION To improve the nutrient intake of Malaysians by making fresh milk available in every Malaysian household. MISSION To produce world-class milk at lowest possible cost via an integrated farming model and by partnering every stakeholder in our society and marketplace
Slide 34: Making Fresh Milk Affordable in Malaysia
Making Fresh Milk Affordable in Malaysia and Creating a Healthier Nation 6 Liter/capita While Malaysia’s dairy consumption per capita is not low, there is very little fresh milk. 100x Vietnamese drink 10 litres of Great potential for higher fresh milk consumption if we benchmark against Vietnam fres
Slide 35: Fresh Milk Has High Growth Potential In Malaysia
Fresh Milk Has High Growth Potential In Malaysia But Hindered By Lack Of Local Supply And High Milk Prices Current Fresh Milk Price/litre RM 8 -15 RM 4.50 NATIONAL Self- Sufficiency 5% All these factors continue to drive Malaysian milk prices to 2x more than global milk countries.
Slide 36: Integrated Dairy Farm To Be Developed In Phases
Integrated Dairy Farm To Be Developed In Phases. Our Contribution To Food Security Comes In 3 Forms… Phase 1 capex RM2 bil Total RM3+ bil Ultimately reaching 200 million litres of fresh milk yearly with 20,000 milking cows Each female / milking cow would be retired after 3 to 5 years. In addition, m
Slide 37: F&N expands from manufacturer to an integrated dairy player
F&N expands from manufacturer to an integrated dairy player PROJECT WHOLESOME Artist impression Smart Farming FeedManagement Crop Management Farm Engineering & R&D Equipment To produce world class milk, we need quality feed. Most feed will be grown in-house, saving Malaysia import of tens of thousan
Slide 38: Progress So Far: Key Milestones of AgriValley
PROGRESS SO FAR… KEY MILESTONES OF AGRIVALLEY 2023 Started the approval process Land Clearance Status a s of 15 with the relevant authorities Sept 2023 – 500 acres land such as Environment Impact cleared Assessment (EIA); Planning and Land Preparation Building (KM) to facilitate Progress – ON compli
Slide 39: Acquisition of Pregnant Heifers from the US
Acquisition of Pregnant Heifers from the US First Batch of 2,500 pregnant heifers received the import permit in September for the importation between 19 Nov and 16 Dec 2024. In Preparation for departure and taking into consideration recent bouts of avian flu, some precautionary measures have been ta
Slide 40: DVS' Unilateral Action Suspending Importation of American Breeding Cattle
DVS’ Unilateral Action Suspending Importation of American Breeding Cattle Thursday, 24 October 2024 (2 days before boarding) • 24 October 2024 Thursday, the Department of Veterinary Services (DVS) issued a letter cancelling the import permit for the dairy cows from the US. The Director of DVS cited
Slide 41: What are the Implications?
What are the Implications? The pregnant heifers will be sold to the US domestic market. • At this stage, our vendors are finding buyers for the suddenly available cows. This will affect our milking plans: • We will not commence milking in January 2025. • We are discussing with our vendors and regula
Slide 42: What's Next?
What’s Next? We want to lower fresh milk cost, hence price to consumers in Malaysia. Our investment model is simple: • Build the best, most comfortable dairy barn. • Bring in the best possible cattle and feed them the best self-planted feed. • Investment is high, but over time, per litre cost of mil
Slide 43: Prospects
PROSPECTS FY2025 Overall: • Despite recent setbacks, the Group is confident in its financial strength, solid cash flow position and strategic plans moving forward. F&N AgriValley: • Meanwhile, the development of our dairy • The Group maintains a balanced focus on manufacturing plant in Cambodia is a
Slide 44: Thank You
Thank You Visit us at www.fn.com.my
Fraser & Neave Holdings — FY2024 Earnings Presentation on 6ix