Dutch Lady Milk Industries Bhd. · MYX:DLADY
Dutch Lady Milk Industries Bhd — Q3 2023 Earnings Presentation
31 slides from Dutch Lady Milk Industries Bhd's earnings presentation, Nov 23, 2023
Slide 1: Dutch Lady Milk Industries Berhad Investor Relations connect
Dutch Lady Milk Industries Berhad Investor Relations connect 23 November 2023 © 2019 FrieslandCampina
Slide 2: Introducing Ramjeet & Kai
Introducing Ramjeet & Kai Ramjeet Kaur Virik Kai de Klerk Managing Director Finance Director Academic/ Professional Qualification(s): Academic/ Professional Qualification(s): • BSc (Hons) Economics, Banking & Finance, London • Bachelor’s Degree in Business Studies, Tilburg University School of Econo
Slide 3: Dutch Lady Milk Industries Berhad: A Company With A Clear Purpose
Dutch Lady Milk Industries Berhad (DLMI): A Company With A Clear Purpose “Nourishing Our Planet and People in Every Stage of Life” 1963 >50 RM1.3Bn Net Sales Value 214mn Year of establishment Years implementing RM1.9Bn Packs distributed under school milk programme halal Market Cap (Dec 2022) since 2
Slide 4: Board of Directors: Name, Designation, Profile
Name Designation Profile Datin Seri Sunita Chairperson, Holds law degree and is a qualified Chartered Accountant Mei-Lin Independent Non- Sits on the Boards of HSBC, Petronas Chemicals Group Rajamukar Executive Director Berhad, MCIS Insurance Berhad and Zurich General Insurance Malaysia Berhad Ramje
Slide 5: Structure of DLMI's Board
Structure of DLMI’s Board Board of Directors Company Secretary Audit & Risk Nominating & Sustainability Committee Remuneration Steering Committee Committee Internal Auditor Related Party Transactions Review Committee
Slide 6: Our Dutch parent company - Royal FrieslandCampina is 51% shareholder of DLMI
Our Dutch parent company - Royal FrieslandCampina is 51% shareholder of DLMI • Royal FrieslandCampina is one of the world’s largest dairy companies with >150 years of Dutch dairy heritage & expertise • Fully owned by a cooperative with 15,137 member dairy farmers in the Netherlands, Germany & Belgiu
Slide 7: Dutch Lady Milk Industries Berhad Key Priorities: 4Ps
Dutch Lady Milk Industries Berhad Key Priorities: 4Ps
Slide 8: Purpose
PURPOSE
Slide 9: Sustainability is Business and Business is Sustainability
Sustainability is Business and Business is Sustainability. Committed to our Purpose: Nourishing our Planet and People in Every Stage of Life Our continuing efforts are focused on nourishing a growing world population with good, safe and affordable nutrition, whilst taking our responsibility of leavi
Slide 10: Towards Better Climate Roadmap
Better Climate Roadmap By 2030, achieve 30% reduction in energy & Towards accelerated Net Climate Neutral & water intensity against 2022 baseline… # 1 Nutrition Brand in Malaysia Deploying Technology & Engineering Solutions Enhancing Business Value & Standards Other 2030 Targets • Renewable Energy &
Slide 11: Sustainability Steering Committee | Driving Decisions at the Highest Level
Sustainability Steering Committee | Driving Decisions at the Highest Level Sustainability is not an isolated function, but a performance KPI across all key functions of the business led by respective management team members, with direction from the Board. Board of Directors Nomination & Audit & Risk
Slide 12: People
PEOPLE =
Slide 13: People Priorities | Focus on wellbeing, growth, leadership and capability building
People Priorities | Focus on wellbeing, growth, leadership and critical capability building Organizational Change Career & Development Primary Processes (in Management, (PDP) Cascade for non- Employee Journey) and Communication, and managers & Succession Compliance Engagement Pipeline Social sustain
Slide 14: People Priorities | 2023 YTD dashboard on 'Best Place to Work' Grid
People Priorities | 2023 YTD dashboard on ‘Best Place to Work’ Grid Key Performance Indicators Diversity in Gender Over2You Jun 2023 Employee Health (Executives) Engagement Index Check-Up Coverage* 52% : 48% 76 16% Female: Male vs 76 GLINT external benchmark vs 20% for 2023 ; Annual KPI MY Average 4
Slide 15: Awards & Recognition
Awards & Recognition | recognised as an attractive employer of choice, committed to best people practices 2023 Graduates' Choice MISA 2023 Special Edition - First Dairy Company to Award - Winner for Best Flexible Work be Certified as the Top FMCG category Arrangements Program Employer in Malaysia •
Slide 16: Performance
PERFORMANCE Winning Profitably
Slide 17: Malaysia Dairy Market: local ambition, evolving regulations, growing competition
Malaysia Dairy Market| "local” ambition, evolving and tightening regulations, and growing competition 100% SSL BY 2025 LOCAL AGENDA TIGHTENING REGULATIONS To help farmers, the Ministry of The 1985 Food Regulations are being The country needs at least another Agriculture and Food Security is offering
Slide 18: We continue to grow & be the leading dairy company in Malaysia
We continue to grow & be the leading dairy company in Malaysia Dairy Manufacturer Value Share% +1.7p.p 28.1 26.4 26.5 YTD 21 YTD 22 YTD 23 12.3 12.5 11.5 8.4 8.0 7.9 7.5 7.5 7.2 7.9 7.2 6.7 Dutch Lady Company A Company B Company C Company D Milk Industries 23 Source: Nielsen, YTD Sep 2023, data base
Slide 19: Performance: Winning in the market!
Performance: Winning in the market! Our brands continue to Win in the market despite a challenging environment. (1) DLMI strengthening position as leader in dairy ! (2) Dutch Lady Liquid Milk continues to thrive ! ✓ Awarded as the No. 1 Most Chosen Brand in the ✓ Approximately 57% of Malaysian House
Slide 20: 26
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Slide 21: Q3 2023 financials versus Q3 2022
Q3 2023 financials versus Q3 2022: Excellent top-line growth, Improved profitability driven by Revenue Growth Management and Cost Improvements Net Operating Free Adj. Operating Cash Flow Profit* -RM37.9m Net Sales +22.4% RM148.8m RM372.8m RM44.4m Adj. Net Profit* Net sales growth +11.2% Adj. EPS* +
Slide 22: DLMI key financials
DLMI key financials Strong topline driven by increasing volume, but profit declined as a result of higher expenses related to Big Blue. In mln MYR +10% Q3’22 Q2’23 373 361 354 351 Q4’22 Q3’23 338 Q1’23 +19% 107 116 +4% 97 87 +22% -19% 59 40 40 41 38 42 36 38 44 31 33 25 12 18 -33 -31 Volume in kT Re
Slide 23: Outlook: external environment remains tough for business
Outlook: external environment remains tough for business Macroeconomic Factors Regulations, Policies and Disruption from geopolitical Mandates tensions Stagnating GDP growth Tax reform: SST 6% to 8, introduction of Ukraine – Russia war continues to cause eInvoicing disruptions & inflationary shocks
Slide 24: Outlook: We will continue to drive penetration of milk
Outlook: We will continue to drive penetration of milk despite volatile and uncertain market dynamics Continue to drive penetration of 2 1 Accelerate Sustainability milk Improve profitability as dairy raw Cash preservation to fund 3 materials are no longer softening 4 our future growth and FX challe
Slide 25: Potential: Our Future Legacy
Our Future Legacy
Slide 26: Greenfield in the making
Greenfield in the making
Slide 27: The greenfield will support DLMI's purpose of nourishing Malaysians
The greenfield will support DLMI’s purpose to Nourishing Malaysians with quality & sustainable dairy nutrition, for now and generations to come Purpose People Planet Performance Profit Purpose Purpose Purpose Purpose RM 600mln Upgraded technology Produce Innovations investment to Gross Profit brings
Slide 28: Our transformation journey!
Our transformation journey! <2021 2021 2022 2023 2024 Double operations: Finalization of Continuation of • Ramp-up of Acquisition land Start construction construction and construction of new commercial Bandar Enstek (in start installation & factory production in world’s largest Halal commissioning o
Slide 29: New Legacy, Work in progress!
New Legacy, Work in progress! >95% of construction completed >75% of processing completed RPM Warehouse racking First filler in filling hall progressing at >75% completion Architecture works in progress at Filling Room
Slide 30: Enstek Video
ENSTEK VIDEO 37
Slide 31: Q&A
Q&A 38
Dutch Lady Milk Industries Berhad — Q3 2023 Earnings Presentation on 6ix