China Resources Beer (holdings) Co. Ltd. · HKEX:291
China Resources Beer (holdings) — China Resources Enterprise — FY2015 Earnings Presentation
20 slides from China Resources Beer (holdings)'s earnings presentation, Mar 18, 2016
Slide 1: 2015 Financial and operational review
2015 Financial and operational review Investor presentation 18 March M r h 2016 1
Slide 2: Results Summary
Results Summary H2 2015 H2 2014 change FY 2015 FY 2014 change HK$m HK$m HK$m HK$m Turnover 38,443 85,358 -55% 133,103 168,864 -21% - continuing operations – beer and HQ 15,212 16,007 -5% 34,821 34,482 +1% - discontinued operations and inter-segments 23,231 69,351 -67% 98,282 134,382 -27% EBITDA** 2,
Slide 3: Results Summary
Results Summary FY 2015 FY 2014 change HK$m HK$m EPS (HK¢) – Basic (165) (7) -2257% EPS (HK¢) – Basic (continuing operations) 34 30 +13% Net cash/(debt) (3 210) (3,210) (8 063) (8,063) +60% Net assets 23,060 69,623 -67% Gearing ratio 13.9% 11.6% +20% ROE* (continuing operations) 6.9% 5.3% +30% CAPEX
Slide 4: Beer: No.1 brand by volume in the world since 2008
Beer (No.1 brand by volume in the world since 2008) Growth through: Solidifying market leader position and upgrade of product mix H2 H2 Change FY 2015 FY 2014 change 2015 2014 HK$m HK$m HK$m HK$m Sales volume (million kl) 5.43 5.54 -2% 11.68 11.84 -1% ASP (in RMB/kl) 2,268 2,292 -1% 2,381 2,308 +3
Slide 5: Beer: Improvement on operating efficiency
Beer (No.1 brand by volume in the world since 2008) Improvement on operating efficiency EBITDA margin EBIT margin Earnings(#) margin & & & EBITDA/kl (in HK$) EBIT/kl (in HK$) Earnings (#) /kl (in HK$) 12.6% 12.7% 6.4% 6.5% 4.7% 4 3% 4.3% HK$368/kl HK$377/kl +2% HK$186/kl HK$193/kl +4% HK$139/kl HK
Slide 6: Beer: Nationwide geographical footprints
Beer (No.1 brand by volume in the world since 2008) Nationwide geographical footprints Geographical distribution of the breweries 5(1.3mkl) [-] Heilongjiang gj g Having presence in 25 out of 34 regions/cities (incl (incl., autonomous regions regions, municipalities and SAR) in China 3(0.6mkl) [-]
Slide 7: Beer: Market share distribution
Beer (No.1 brand by volume in the world since 2008) Market share distribution China beer market competitive landscape by volume 2005 Top five market share = 47.3% 2014 Top five market share = 70.9% Tsingtao Brewery CR S Snow 13.4% 23.2% Others 29.1% CR Snow 13.0% Others 52 7% 52.7% Beijing Yanjing
Slide 8: Beer: Proven growth records
Beer (No.1 brand by volume in the world since 2008) Proven growth records Turnover UNP In HK$’m In HK$’m 40,000 1,000 800 30,000 600 20,000 400 10,000 200 - - 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Turnover UNP "Courageous & In
Slide 9: Evolution of the China Beer Market Over the Past 3 Decades
Beer (No.1 brand by volume in the world since 2008) Evolution of the China Beer Market Over the Past 3 Decades CR Snow has been at the forefront of evolution,, effectively yppositioning g itself to capture p outsized growth g First Stage Second Stage Third Stage Regional Expansion Market Consolida
Slide 10: CRB: Pure beer business
Beer (No.1 brand by volume in the world since 2008) CRB: Pure beer business The Undisputed Leader in World’s Most Attractive Beer Market 1 • China the llargestt1 and Chi iis th d mostt attractive tt ti beerb market k t globally l b ll valued l d att US$79b US$79bn in i 2014 • CRE is the #1 brewer
Slide 11: Differentiated sales channel strategy with unique on-the-ground capabilities
Beer (No.1 brand by volume in the world since 2008) Differentiated sales channel strategy with unique on-the-ground capabilities Distribution strategy focused on professionalism, exclusivity and flatness of network Urban markets Regional markets1 Specific sales force to target on-trade customers
Slide 12: Diverse product portfolio and innovation across brands and price points
Beer (No.1 brand by volume in the world since 2008) Diverse product portfolio and innovation across brands and price points addressing premiumization trend Developed mainstream, mid and high-end products across different retail price points ranging from RMB3 to RMB25 per bottle to cater for a fu
Slide 13: Future growth strategy
Beer (No.1 brand by volume in the world since 2008) Future growth strategy F h penetrate high-end Further hi h d on-traded andd modern d retail il channels h l well ll suited i d Our 1 vision going forward is to continue to capture market share and improve efficiency for premium brands Focus on
Slide 14: Appendix I – Global beer consumption summary
Appendix I – Global beer consumption summary Long term potential on market volume growth (32% of Germany only) 2014 Top ten beer markets per capita volume consumption 150 125 114 3.1x 100 100 Liters per capiita 77 74 75 69 63 60 48 50 37 37 25 0 Germany Vietnam m Poland d Brazzil Russia a Mexico o J
Slide 15: Appendix II – Historical major M&As in beer business
Appendix II – Historical major M&As in beer business Strong bargaining power and lower acquisition cost on M&A US$/kl 2,500 Chongqing Shenzhen Tsingtao acquired 39% AB InBev Carlsberg acquired 12.25% ABInbev Carlsberg AB InBev acquired Brewery Jingyalong stake in Yantai Beer sold 7% stake in Chongqi
Slide 16: Appendix III – CRE awards
A Appendix di III – CRE awards d Highlights of accolades received Since 2002 Produced quarterly financial and operational review on a voluntary basis. First conglomerate company among the constituent stocks in the Hang Seng Index to initiate such a move 2005-2015 Named one of Hong Kong Outstanding
Slide 17: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2010-2015 Awards for cover photo/design; printing and production; non-traditional in the categories of food distributors processors & wholesalers, distributors, wholesalers manufacturing & distributing, distributing
Slide 18: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2011-2015 Awarded as one of the companies receiving the commendation in Corporate Social Responsibility A Award dbby CAPITAL and d CAPITAL Weekly W kl 2011 Received 2 best awards for investor relations and investor
Slide 19: Appendix III – CRE awards (Cont'd)
A Appendix di III – CRE awards d (Cont'd) (C t'd) Highlights of accolades received 2012-2014 Received Outstanding Corporate Social Responsibility Award by The Mirror Monthly Magazine 2013/2014 Frank Lai was selected as Asian Company Secretary of the Year by Corporate Governance Asia th 2013/2014 R
Slide 20: Disclaimer
Disclaimer Data and information contained in this presentation is provided for informational purposes only. Neither Chi Resources China R E t Enterprise, i Li it d nor any off its Limited it subsidiaries b idi i shall h ll be b liable li bl for f any errors or delays d l i in the content, or for any
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