Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — 9M2016 Earnings Presentation
16 slides from Fraser & Neave's earnings presentation, May 2016
Slide 1: F&N 9M2016 Financial Highlights
F&N 9M2016 FINANCIAL HIGHLIGHTS
Slide 2: Important notice
Important notice 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 res
Slide 3: 9M2016 Performance Highlights
9M2016 Performance Highlights 43%1 Profit After Tax Growth Strong operating performance in the nine-month ended 30 June 2016 (“9M2016”) • Impacted by adverse foreign exchange effect • Food & Beverage EBIT up 31%; margin improved to 10%, from 7% • Dairies growth momentum continued unabated; EBIT up 6
Slide 4: Group Financial Highlights
9M2016 Group Financial Highlights Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $1,486.9 $140.8 ▼ 6.8% ▲ 26.0% Profit after tax1 Gearing (millions) (millions) $127.2 $835.0 (net cash) ▲ 42.7% ▼3.5%3 Dividend per share (interim) Earnings per share (basic)1,2 (cents) (cents)
Slide 5: Revenue Down 6.8%
9M2016 Revenue Down 6.8% due to negative translation effects and competitive pricing, despite volume growth Revenue by Business Segment 9M2016 ($) Revenue by Business Segment (%) -6.8% Dairies $1,595m 55% Publg $1,487m & Print $1,487m 15% -4.6% -8.7% Beverages $853m $814m 30% 9M2016 $490m Revenue by
Slide 6: Revenue | Beverages
9M2016 Revenue | Beverages Revenue declined 9% on weaker Ringgit, competitive pricing in Malaysia and loss of Red Bull sales Beverages Malaysia (-15%; -5% in constant Volume Growth currency) (Key Brands) (%) - Volume increased 7%, despite lost sales from Red +18% +11% Bull, due to effective executio
Slide 7: Revenue | Dairies
9M2016 Revenue | Dairies Revenue fell 5%, impacted by negative translation effects and higher tactical discounts Dairies Malaysia (-10%; flat in constant Volume Growth currency) (%) - Impacted by weaker Ringgit and higher trade discounts given (in view of lower input costs) +3% +1% - Consolidated it
Slide 8: Revenue | Publishing & Printing
9M2016 Revenue | Publishing & Printing • Retail and Distribution divisions recorded revenue gains • Strong sales performance in airport retail and high street stores • Higher partwork sales in Hong Kong and Singapore • Publishing and Printing divisions revenue fell • Slow-down in demand in Education
Slide 9: EBIT Grew 26.0%
9M2016 EBIT Grew 26.0% Profit growth supported by Dairies, despite negative translation impact EBIT by Business Segment 9M2016 9M16 ($) 9M15 EBIT EBIT by Business Segment (%) EBIT Margin 12.2% Margin 9.5% Publg 7.7% 6.5% 7.0% & 7.0% 9M15 9M16 Dairies Print $82m $141m EBIT EBIT 71% -4% Margin Margin
Slide 10: EBIT | Beverages
9M2016 EBIT | Beverages Weaker Ringgit, increased pricing pressures and lost contribution from Red Bull impacted earnings Beverages Malaysia (-26%; -18% in constant EBIT currency) -18% +36% − EBIT dropped from loss of contribution from Red -18% -4% Bull, increased pricing pressures and higher -23% m
Slide 11: EBIT | Dairies
9M2016 EBIT | Dairies Earnings surged 66%; margin expansion on the back of higher contribution from Malaysia and Thailand EBIT Dairies Malaysia (+62%; +81% in constant +66% -nm- +60% currency) +62% Others - Driven by lower input costs $5m - Weaker Ringgit affected extent of earnings $1m Thai growth
Slide 12: EBIT | Publishing & Printing
9M2016 EBIT | Publishing & Printing • Losses before interest and taxation increased to $5.6m on lower revenue, investments made in an e-commerce project and foreign exchange losses EBIT 9M2015 9M2016 ($3m) ($6m) 12 Nine-month ended 30 June 2016 11 May, 2017
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Reflects the Group’s underlying operational Key Financial Ratios results following sale of brewery in Myanmar 9M2016 FY2015 • Takes into account Group’s capital position Total Equity1 $2,879m $2,556m and near-term c
Slide 14: Key Developments: Investing for Growth
KEY DEVELOPMENTS: Investing for Growth
Slide 15: Investing for our future
Investing for our future RM NEW ASEPTIC COLD-FILLING PET BOTTLE LINE 180 Offers new formulations and packaging formats Reduces PET resin packaging material by 40% Produces 6.5 million cases per year MILLION STATE-OF-THE-ART Artist’s impression of the facility FACILITY, Shah Alam Offers a four-fold i
Slide 16: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited 11 May, 2017