Carlsberg Brewery Malaysia Bhd. · MYX:CARLSBG
Carlsberg Brewery Malaysia Bhd — H1 2023 Earnings Presentation
39 slides from Carlsberg Brewery Malaysia Bhd's earnings presentation, Aug 15, 2023
Slide 1: Financial Results Q2/1HFY23 Analyst & Press Briefing
FINANCIAL RESULTS Q2/1HFY23 Analyst & Press Briefing Tuesday, 15 Aug 2023
Slide 2: Changes in Board & Management
CHANGES IN BOARD & MANAGEMENT Eric Ooi Lip Aun Sergey Rychkov (Appointed effective 1 May 2023) (Appointed effective 9 June 2023) • Independent Non-Executive Director • Supply Chain Director • Chairman of Audit Committee • Over 16 years of experience in Supply Chain • Chairman of Risk Management & Ma
Slide 3: Weakening Consumer Sentiment in MY & SG
1HFY23 vs. 1HFY22 Weakening Consumer Sentiment in MY & SG -4.8 % -5.5 % Malaysia – Revenue Singapore – Revenue Sri Lanka – Higher share of profit of RM9.9 million in 1HFY23 due to the absence RM841.0mil RM325.9mil of one-off surcharge tax expense of RM3.7 million. -10.7 % -1.3 % Profit from Operatio
Slide 4: Weak Consumer Spending, Softer Market
Q2FY23 vs. Q2FY22 & 1HFY23 vs 1HFY22 Weak Consumer Spending, Softer Market 2023 Q2’23 1HFY23 The lower performance in Q2FY23 was primarily due to: Results (RM million) (RM million) Weaker trading environment Y-O-Y Y-O-Y Revenue 506.7 1,166.9 Higher base observed in Q2FY22 driven by the higher -11.8%
Slide 5: 2nd Interim Dividend of 22 sen declared
2nd Interim Dividend of 22 sen declared Q2FY23 Q2FY22 1HFY23 1HFY22 EARNINGS PER SHARE 28.86 sen 29.09 sen 56.67 sen 59.05 sen DIVIDEND PER SHARE 22.00 sen* 22.00 sen 43.00 sen 44.00 sen PAYOUT RATIO 76.2% 75.6% 75.9% 74.5% * Equivalent to a total payout of RM67.3 million 5
Slide 6: Mainstream sales down 8%
Earlier Timing of Chinese New Year 1HFY23 vs. 1HFY22 Celebration, Consumption Slowdown -8% • Lower sales due to earlier timing of CNY and weaker consumption due to a softer market • Carlsberg brand CELEBRATED festivals with nationwide Chinese in MAINSTREAM sales New Year and Harvest promotions, with
Slide 7: Premium sales down 14%
1HFY23 vs. 1HFY22 Earlier Timing of Chinese New Year Celebration, Consumption Slowdown -14% in PREMIUM sales • Weak consumer sentiment and lower disposable income impacted sales in premium category • Continue to invest in consumer-facing campaigns to regain and drive growth 7
Slide 8: Alcohol-free brew sales down 9%
Earlier Timing of Chinese New Year 1HFY23 vs. 1HFY22 Celebration, Consumption Slowdown -9% in ALCOHOL-FREE BREW sales • Lower sales impacted by a softer market • In our commitment to advocating responsible consumption, we will continue to strengthen our Alcohol-Free offerings in our portfolio
Slide 9: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 10: Brewing Prosperity Together this CNY
Brewing Prosperity Together this CNY DECEMBER - FEBRUARY 2023 CNY limited-edition festive can in collaboration with Chinese artist launched in both MY & SG Roll-out of integrated marketing campaign across all sales channels VIBRANT AND IMPACTFUL EXECUTION ACROSS ALL CHANNELS 10
Slide 11: Raikan Kebanggaan Sabah & Sarawak
Raikan Kebanggaan Sabah & Sarawak APRIL – DECEMBER 2023 FOR LOCALS, BY LOCALS | TRANSLATING SIX UNIQUE ICONS OF EAST MSIA ONTO OUR CANS Back for the third year, Carlsberg Smooth Draught returns with the ‘Raikan Kebanggaan Sabah & Sarawak’ artfully designed cans and bottles Collaborated with two Saba
Slide 12: Reinforce Brand Story & Innovation by Celebrating Consumer Moments
MAY – JUNE 2023 This brand equity campaign offers the best drinking moments to consumers, reinforcing #BestWithCarlsberg Two months promotion across on- and off- trade to drive consumer off-take More than 200 consumers will be treated to a luxury getaway in Langkawi in September REINFORCE BRAND STOR
Slide 13: Largest & Longest-Running Amateur Golf Tournament in Malaysia
MAY - OCTOBER 2023 Incorporating three digital golf legs, extending Carlsberg Golf Classic for the #NEXTGEN 31 golf tournaments for 3,700 golfers at prestigious clubs nationwide LARGEST & LONGEST-RUNNING AMATEUR GOLF TOURNAMENT IN MALAYSIA 13
Slide 14: Real Spicy Real Smooth Drinking Experience
AUGUST – SEPTEMBER 2023 COME JOIN US ON A REAL SPICY REAL SM TH DRINKING EXPERIENCE! Celebrating favourite local spicy treats paired with Carlsberg Smooth Draught Exciting workshops and upbeat music to make every moment #BestWithCarlsberg Scan to join the event! 14
Slide 15: Make it Smooth
APRIL 2023 Make it Smooth Proud sponsor for Sneaker Con DRIVING LIFESTYLE & TRENDY ASSOCIATION WITH TARGET CONSUMERS Southeast Asia, biggest street- fashion event in Singapore 15,000 turnout, a great reveal of the #MakeItSmooth campaign by Carlsberg Smooth Draught Leveraging on brands collaboration,
Slide 16: Carlsberg x Liverpool FC
JULY – AUGUST 2023 Carlsberg x Liverpool FC Three Liverpool FC legends had a meet-and-greet session, party bus and bar hopping with Carlsberg consumers 200 consumers won tickets to watch Liverpool FC vs. Leicester City on 30th July and against vs. Bayern Munich on 2nd August in Singapore CELEBRATING
Slide 17: New Look, Same Great Taste. You've earned it
New Look, Same Great Taste. You’ve earned it MARCH 2023 MAY 2023 New look featuring an eagle in vibrant shades of red and yellow Brewed in 4% ABV, SKOL is made with the best choice of hops, grain-malt and pure water SKOL’s credentials with the use of quality ingredients, European heritage, and prove
Slide 18: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 19: 1st in the Market, an Extraordinary Cinema Experience
FEBRUARY 2023 1st IN THE MARKET, AN EXTRAORDINARY CINEMA EXPERIENCE Experience Valentine’s with A Twist Specially Curated By 1664 Rosé! This is a first-of-its-kind superior movie-viewing experience in partnership with Dadi Cinema at Pavilion Bukit Bintang Kuala Lumpur.
Slide 20: 1664 Bon Appétit-lah
1664 Bon Appétit-lah MAY – JUNE 2023 1664 returned with its third edition of Bon Appétit-lah to turn the ordinary into extraordinary at Sentul Depot. 8,500 consumers were treated to an amazing dining affair complemented with an unparalleled drinking experience for 2.5 weeks in June TURNING ORDINARY
Slide 21: Cheers to Good Taste with a Twist!
MAY – JUNE 2023 Cheers to Good Taste with a Twist! Take a stroll down the long Parisian- inspired Street of Rue 1664 at the heart of Singapore Over 3,000 consumers enjoyed live performances and live portrait drawings - just like those on the street of Paris! SPARKING JOIE DE VIVRE IN THE HEART OF OR
Slide 22: Shaking Up the Town During St Patrick's Day
MARCH 2023 In MY, Shake-Up Your St. Patrick’s Day Celebration with Connor’s in Almost 200 Outlets Nationwide Top-notch prizes and exclusive collectibles were up for grabs in 50 outlets on 17th and 18th March. In SG, an experiential event was held to educate consumers on Connor’s unique shake ritual
Slide 23: Reinforce British Provenance via British Brand Collaboration
JULY – AUGUST 2023 Combining the very best of British culture in an extraordinary fusion of taste and sound Connor’s Shake Challenge at Almost 150 Outlets Nationwide ALMOST RM 1 million worth of Marshall Willen wireless portable speakers to be won REINFORCE BRITISH PROVENANCE VIA BRITISH BRAND COLLA
Slide 24: Non-renewal of Asahi's Distribution Agreement
JUNE 2023 Non-renewal of Asahi’s Distribution Agreement For Malaysia & Singapore • Mutually agreed by both parties on 19 June 2023 • Remain as the exclusive distributor until 31 Dec 2023 • Continue to step up on our premiumisation strategy and investing in our existing premium brands • Do not expect
Slide 25: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 26: Expanding Brand Awareness in Klang Valley
JANUARY 2023 More than 73,000 consumers tasted Somersby 0.0 in 4 key locations in Klang Valley in December and January 2023 Sampling drive at four major malls including One Utama, Starling Mall, Sunway Pyramid & Pavilion Bukit Jalil First brand advertisement on radio – non- alcoholic beverage Levera
Slide 27: New Variant Launch to Drive Cider Category
APRIL 2023 Launch of Somersby Passionfruit and Orange at the Somersby Wonderful Garden Pop-Up Event NEW VARIANT LAUNCH TO DRIVE CIDER CATEGORY 27
Slide 28: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 29: Top Performing Brand on eCommerce
Top Performing Brand on eCommerce Top 5 Brands in Groceries on major eCommerce platforms in MY and SG Collaborated with KOL to co-host Shopee 29 Livestream
Slide 30: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 31: RM108mil CapEx for Brewery Upgrade Completed
RM108mil CapEX for brewery upgrade completed A positive step forward for our Group's sustainability efforts 5 benefits 3
Slide 32: OnePlan Goes Live in June
OnePlan Goes Live in June Benefits of OnePlan ✓ Time reduction in data analytics ✓ Improved insights ✓ Better data collection ✓ Enhanced Risk Management 32 A new generation planning tool to harmonise Demand and Supply Planning process Malaysia operation is the pilot market for OnePlan, before rollin
Slide 33: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 34: Improved Engagement Scores in Both Countries
Improved Engagement Scores in Both Countries Malaysia Singapore Engagement DE&I Engagement DE&I Index Index Index Index 80% 74% 71% 69% (2021: 79%) (2021: 61%) 34
Slide 35: Carlsberg Malaysia Bags 8 Wins at 2023
Carlsberg Malaysia bags 8 WINS at 2023! Unwavering dedication to talent development & positive work environment 35
Slide 36: SAIL'27 Strategy Review
1HFY23: 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 perf
Slide 37: 1HFY23: On Track to Meet ESG Targets
1HFY23: On track to meet ESG targets 2.8 91% 3.3hl/hl 0 58 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 (3.3 kgCO2e/hl in 1HFY22) (92% in 1HFY22) (3.5 hl/hl in 1HFY22) (0 in 1HFY22) (1,268 days
Slide 38: ZERO Irresponsible Drinking
ZERO Irresponsible Drinking 3,286 consumers engaged directly via 8 #CELEBRATERESPONSIBLY activations 41 employee ambassadors volunteered with over 24 hours clocked 0 drink driving-related incidents and accidents ADVOCATING RESPONSIBLE CONSUMPTION TO CONSUMERS
Slide 39: 2023 Outlook
2023 Outlook ➢ The Group observes a cautious outlook due to: o Anticipated higher inflationary pressures; o Geopolitical tensions will continue to pose challenges & dampen consumer spending ➢ However, the end of Prosperity Tax 2022 will positively impact the Group’s net profit. ➢ The Group will stay
Carlsberg Brewery Malaysia — H1 2023 Earnings Presentation on 6ix