Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — FY2018 Earnings Presentation
44 slides from Fraser & Neave Holdings Bhd's earnings presentation, Nov 12, 2018
Slide 1: Full Year FY 2017/18 Group Financial Highlights
Full Year FY 2017/18 Group Financial Highlights 12 November 2018
Slide 2: Forward-looking statements disclaimer
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 results, performance
Slide 3: F&B Exports target RM800 million by 2020
F&B Exports Thailand EXPORT TARGET F&B Exports ex-F&B Malaysia & Malaysia F&B ex-F&B Thailand Malaysia to reach RM 800 million F&B by 2020 Thailand Exports FUTURE NOW
Slide 4: Quarter FY 2018 Group Financial Performance
EN FRASER & NEAVE HOLDINGS BHD Quarter 4 FY 2018 Group Financial Performance
Slide 5: Financial Highlights Q4 2017/2018
Financial Highlights Q4 2017/2018 Q4 2016/2017 Change Revenue (RM'000) 996,640 976,275 2.1% Operating profit (RM'000) 98,681 19,305 411.2% Profit before tax (RM'000) 99,649 19,390 413.9% Profit after tax (RM'000) 81,230 19,635 313.7% Basic earnings per share (sen) 22.2 5.4 16.8 ▪ Group revenue for t
Slide 6: Q4 FY 2018 Revenue by Business Segment
Revenue Q4 FY 2018 Revenue \ by Business Segment (RM’000) F&B Malaysia : F&B Thailand (% ) 2.1% Revenue in F&B 996,640 976,275 THB terms Thailand increased by 8.3% 45.3% F&B Malaysia 1.9% 54.7% 2.3% 545,401 535,372 Q4 FY 2018 450,946 440,720 nm nm F&B Thailand 45.2% 191 220 F&B (8) 73 Malaysia 54.8%
Slide 7: Q4 FY 2018 Operating Profit by Business Segment
Operating Profit Q4 FY 2018 Operating Profit by Business Segment (RM'000) F&B Malaysia : F&B Thailand (% ) 411.2% Operating profit F&B in THB terms 98,681 Malaysia increased by 101.3% F&B 37.2% Thailand 94.9% 62.8% 61,677 418.7% 36,544 Q4 FY 2018 31,641 19,305 nm nm F&B (11,468) Malaysia 299 (927) (
Slide 8: Full Year FY 2018 Group Financial Performance
EN FRASER & NEAVE HOLDINGS BHD Full Year FY 2018 Group Financial Performance
Slide 9: Financial Highlights Full Year 2017/2018
Full Year Full Year Financial Highlights Change 2017/2018 2016/2017 Revenue (RM'000) 4,109,859 4,101,374 0.2% Operating profit (RM'000) 420,240 345,066 21.8% Profit before tax (RM'000) 422,729 353,713 19.5% Profit after tax (RM'000) 385,096 323,347 19.1% Basic earnings per share (sen) 104.9 88.3 16.
Slide 10: FY 2018 Revenue by Business Segment
Revenue FY 2018 Revenue \ by Business Segment (RM’000) F&B Malaysia : F&B Thailand (% ) 0.2% 4,109,859 4,101,374 Revenue in THB terms F&B increased by Thailand 0.1% 2.2% 43.5% F&B Malaysia 0.3% 2,321,667 2,318,841 56.5% 1,787,051 1,781,474 FY 2018 nm nm F&B Thailand 733 874 326 267 43.4% F&B Malaysi
Slide 11: FY 2018 Operating Profit by Business Segment
Operating Profit FY 2018 Operating Profit by Business Segment (RM'000) F&B Malaysia : F&B Thailand (% ) 21.8% Operating profit F&B in THB terms F&B Malaysia 420,240 increased by 14.4% Thailand 39.3% 60.7% 345,066 13.1% 257,973 38.1% 228,000 FY 2018 166,734 120,706 nm nm (2,150) 6,571 F&B 581 463 Tha
Slide 12: F&B Malaysia
EN FRASER & NEAVE HOLDINGS BHD Q @ F8B Malaysia
Slide 13: F&B Malaysia revenue improved for 3 consecutive quarters
+0.1% 2,321,667 2,318,841 -0.7% +1.0% 1,191,018 1,182,205 1,139,462 1,127,823 -7.2% +7.0% +0.3% +1.9% 647,082 594,061 600,405 581,800 592,451 543,936 535,372 545,401 Q1 Q1 Q2 Q2 1H 1H Q3 Q3 Q4 Q4 2H 2H FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 ▪ F&B Malaysia registered im
Slide 14: F&B Malaysia operating profit
+38.1% -24.9% +571.9% 166,734 -31.8% 120,706 -16.2% +102.8% 107,957 +418.7% 85,659 81,075 60,351 12,749 49,115 47,606 41,162 39,913 36,544 (11,468) 24,217 Q1 Q1 Q2 Q2 1H 1H Q3 Q3 Q4 Q4 2H 2H FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 Improvement in profit performance for t
Slide 15: F&B Thailand
EN FRASER & NEAVE HOLDINGS BHD @& F&B Thailand
Slide 16: F&B Thailand revenue
+0.3% Revenue in THB terms increased by 2.2% +1.0% 1,787,051 1,781,474 -0.3% +5.5% -3.6% -2.9% +2.3% 900,692 892,204 889,270 886,359 468,236 450,946 448,503 448,550 443,701 440,720 435,413 432,456 Q1 Q1 Q2 Q2 1H 1H Q3 Q3 Q4 Q4 2H 2H FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY
Slide 17: F&B Thailand operating profit rose 13.1%
+13.1% Operating profit in THB terms increased by 14.4% -4.1% 257,973 +43.2% 228,000 -6.8% -0.9% 144,811 138,882 +94.9% +11.4% 119,091 83,189 78,050 72,710 66,761 66,172 61,677 57,414 51,548 31,641 Q1 Q1 Q2 Q2 1H 1H Q3 Q3 Q4 Q4 2H 2H FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 F
Slide 18: Exports
EN FRASER & NEAVE HOLDINGS BHD CQ Exports
Slide 19: Export growth and contribution FY 2018
Growth for F&B Malaysia exports in Full Year 15% FY 2018 Growth for F&B Thailand exports in Full Year 8% FY 2018 Contribution of total exports to Full Year 16% FY 2018 Group revenue Contribution of total exports to Full Year 14% FY 2018 Group operating profit
Slide 20: Dividends
EN FRASER & NEAVE HOLDINGS BHD CQ Dividends
Slide 21: Final single tier dividend of 30.5 sen per share
FY 2018 FY 2017 Total equity1 (RM'000) 2,312,471 2,132,730 Total assets (RM'000) 3,345,258 3,231,498 Net cash (RM'000) 201,568 45,336 Net assets per share (RM) 6.31 5.82 Gearing ratio 0.15 0.18 1 Includes non-controlling interest ▪ Final single tier dividend of 30.5 sen per share, for approval by sh
Slide 22: Forging Ahead for the Future
EN FRASER & NEAVE HOLDINGS BHD Q Forging Ahead for the Future
Slide 23: Getting F&N Future Ready
CONSUMER- COST FOCUSED OPTIMISATION INNOVATION Getting F&N Future Ready CAPACITY & CAPABILITY BUILDING
Slide 24: Capacity & Capability Building
• Increase our production and warehousing capacity, broaden our capabilities, and shorten our route to the different markets we serve • Invest for future • Increase capacity not just in volume but also in packaging format expansion • Support our strategic intent to CAPACITY & win in Export CAPABILIT
Slide 25: Capacity expansion with over RM500 million capex
Increase our production Enhance our and warehousing Greater innovative and capacity, broaden our capacity for competitive capabilities, and shorten economies of abilities our route to the different scale markets we serve Optimise Over RM500 logistics million capex movement and over 3 years reduce ou
Slide 26: 100PLUS ACTIVE 1 litre production
Commenced producing 100PLUS ACTIVE 1 litre pack since March 2018.
Slide 27: Tea products production since June 2018
Commenced producing tea products since June 2018.
Slide 28: Cold-aseptic filling PET line
COLD- ▪ Longer product shelf life ASEPTIC ▪ Less flavour loss FILLING ▪ Flexibility in bottle design ▪ Reduce usage of PET resin packaging material PET LINE
Slide 29: New RM15 million dairy production line, Pulau Indah
New RM15 million production line at its dairy manufacturing plant in Pulau Indah to further expand its capacity To enable greater F&NHB’s export capability
Slide 30: Consumer-focused innovation
▪ Offering healthier options ▪ Differentiation in packaging format catering to the different occasion and needs of our consumers ▪ Growing into adjacent categories
Slide 31: New introductions in 2018
NEW INTRODUCTIONS IN 2018 100PLUS Reduced Sugar 100PLUS Blackcurrant 100PLUS ACTIVE Powder F&N Ice Mountain Drinking Water F&N Lemon Lime F&N SEASONS Soya F&N SEASONS Juice _> 4 CARNATION Plus TEAPOT Squeeze Tube F&N Magnolia Barista
Slide 32: 100PLUS full range with Healthier Choice Logo
100PLUS Full Range now with Healthier Choice Logo
Slide 33: New packaging formats in 2018
Differentiation in NEW IN 2018 packaging format catering to the different needs of our consumers and customers 2.5 kg pouch 20 kg bag TEAPOT CARNATION TEAPOT Stick Pack EXTRA Plus Squeeze Tube
Slide 34: Cost optimisation through in-sourcing
▪ In-sourcing, to improve our cost efficiency and achieve better quality control by reducing dependency on external suppliers eg. ▪ Can-making lines in Pulau Indah ▪ Water line and UHT line in Shah Alam ▪ Cold-Aseptic Filling PET line and integrated warehouse in Shah Alam ▪ For completed capex, we e
Slide 35: Capex invested over a 3-year period
> RM 500 million invested over a 3-year period to increase capacity and build our capabilities Sweetened condensed milk 600bpm water line, pouch & tube filling line, Shah Alam Rojana Combi blow, mould & filling machine, Shah Alam is aig i Cold-Aseptic Filling PET line & warehouse, Shah Alam Debottle
Slide 36: Outlook
▪ Domestic markets in Malaysia and Thailand to remain challenging amidst: ▪ continuing competitive price pressures and intensifying competition ▪ effects from the volatility in foreign currency movements and commodity prices. ▪ The Group has partially hedged its core commodity requirements for the f
Slide 37: Thank You
GN FRASER & NEAVE HOLDINGS BHD THANK YOU
Slide 38: Appendix: 2018 Highlights
GN FRASER & NEAVE HOLDINGS BHD Appendix: 2018 Highlights
Slide 39: SUKMA XIX Perak 2018 sponsorship
Q C SUKMAXIX A Perak 2018 ———. Our continuous support towards local sports scene through the sponsorship of SUKMA XIX Kay on | GN
Slide 40: 100PLUS as Official Regional Supporter for AFF Suzuki Cup 2018
Slide 41: Oyoshi Green Tea
Kd OYOSHI GREEN TEA with fresher & better taste
Slide 42: F&N 135th Anniversary prizes
Slide 43: Community and school programmes
Subang Jaya Melaka Tengah Perlis Ampang Jaya Petaling Jaya >558,000 kg 364 SCHOOLS
Slide 44: Our Awards & Recognition
ENVIRONMENT OUR AWARDS & RECOGNITION Malaysia Enterprise Innovation Award 2018 (F&NHB) BrandLaureate World Halal BestBrands 2018 — BestBrands in FMCG — Dairy Products (F&NHB) QUDAL Quality Medal 2018/2019 — Soft Drink (F&NHB) Putra Brand Awards 2018 — Beverage — Non-alcoholic (100PLUS) Selangor Exce
Fraser & Neave Holdings — FY2018 Earnings Presentation on 6ix