Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Neo Group — FY2014 Earnings Presentation
32 slides from Singapore Exchange's earnings presentation, Mar 28, 2014
Slide 1: Neo Group FY2014 Results Presentation
NEO GROUP FY2014 RESULTS PRESENTATION 1
Slide 2: FY2014 Financial Highlights
FY2014 FINANCIAL HIGHLIGHTS 2
Slide 3: Presentation Outline
PRESENTATION OUTLINE 1. Solid Performance 2. Sound Fundamentals 3. Sustainable Future 4. Why Invest in Neo Group? 3
Slide 4: Solid Performance
SOLID PERFORMANCE 6 oe += i 4
Slide 5: Key Group Highlights
KEY GROUP HIGHLIGHTS Achieved Record Revenue Record Net Profit Key Growth Driver – Food Catering, with Record servings to 2.5 million guests Record Dividend Significant NP margin growth; Capacity increase and automation to drive further Economies of Scale Strong Brand Recognition 5
Slide 6: Record Revenue
RECORD REVENUE 25.6% to $52.4m 52.4 27.0% to $39.0m 41.7 Food Catering • More social catering events during the period • Record CNY sales • Growth in market share for corporate and government sectors 15.6% to $12.7m Food Retail • Improved same-outlet sales • Growth in delivery sales Overall, served
Slide 7: Record Net Profit
RECORD NET PROFIT 111.9% to $6.4m Net Profit Net Margin S$' m % 8.0 14.0 15.0 Record Net Profit driven mainly by 12.2* • Robust sales • 94.0% increase in PBT with stronger operating 6.0 9.8 profit contribution from Food Catering 9.3 10.0 7.2 Healthy net profit margin 4.0 • 12.2%* - significant impro
Slide 8: Segmental Breakdown
SEGMENTAL BREAKDOWN 27.0% to $39.0m Food Catering 52.4* • Growth from social, corporate and government sectors 41.7 15.6% to $12.7m Food Retail • Improved same-outlet sales ‒ Growth on track ‒ 9.3% or S$0.73 million increase • Commendable Delivery sales ‒ Impressive 51.4% growth in delivery sales ‒
Slide 9: Financial Position
FINANCIAL POSITION Profitability Ratios FY2014 FY2013 % change Earnings Per Share (cents) 4.44 2.87 54.7 Return On Assets (%) 14.8 9.8 51.0 Return On Equity (%) 31.2 17.3 80.3 Financial Position As at 31 Jan 2014 As at 31 Jan 2013 Shareholders’ equity (S$’m) 20.5 17.4 17.8 Net Gearing (%) (1) 37.8 N
Slide 10: Record Dividend
RECORD DIVIDEND Dividends of not less than 60% of our net profits attributable to our Shareholders till FY2015 49.5% 1.50 136.7% 10
Slide 11: Sound Fundamentals
SOUND FUNDAMENTALS eet ft ty 11
Slide 12: Diversified Business Segments
DIVERSIFIED BUSINESS SEGMENTS SINGAPORE’S LARGEST CATERING GROUP WITH LEADING MARKET SHARE* Food Catering Food Retail Food and Catering Supplies *Source: Events Catering Services Singapore – Euromonitor International, April 2012. “Events catering” means food catering services provided for social or
Slide 13: Various Brands to Capture Different Market Segments
VARIOUS BRANDS TO CAPTURE DIFFERENT MARKET SEGMENTS Food Catering Food Retail Food and Catering Supplies – Mid market – Mid market – Households – 23 outlets in Singapore and Indonesia – Support the Group’s Food – Corporations – Provides fresh sushi at Catering and Retail affordable prices Businesses
Slide 14: Kitchen Operations & Capacity
KITCHEN OPERATIONS & CAPACITY 6A Wan Lee Road (Neo Garden Catering/Deli Hub/Best Catering) Built-in floor area: 12,346 sq ft Capacity: 10,000 to 15,000 guests/day 1 Enterprise Road Built-in floor area: 57,111 sq ft Capacity: 15,000 to 20,000 guests/day 5 1 4 Shimei East Kitchen 6 3 (Supplies to 2 Ea
Slide 15: Productivity Boost
PRODUCTIVITY BOOST Mechanisation Automation Rotary Fryer Vegetable Cut Machine Kitchen Automation Mobile Data Terminal and Enhanced IT System Effective Cost Management Effective Cost Management • Vegetable Cut Machine • IT System – An SMS system was put in place to allow ‒ Reduces manpower requireme
Slide 16: Food Catering
FOOD CATERING J yw 5 cae CATERING J
Slide 17: Highlights for FY2014
HIGHLIGHTS FOR FY2014 RECORD Sales 16% BREAKING 1,118 orders 30,977 orders, (FY2014 vs FY2013) @ 1st day of CNY 14.0% (2013:1,005; 2012:818) (FY2013: 27,164) KEY DRIVERS • Strong brand recognition supported by wide media coverage & publicity ‒ Singapore Prestige Brand Award (Hall of Fame and o
Slide 18: Highlights for FY2014
HIGHLIGHTS FOR FY2014 Sales 51.0% 716,115 guests served 17,816 orders (FY2014 vs FY2013) 34.4% 33.6% (FY2013: 532,794) (FY2013: 13,335) KEY DRIVERS • Increase in corporate customers base • Increase in brand awareness through corporate nights • Cater to larger event size • Cater to more premium/co
Slide 19: Highlights for FY2014
HIGHLIGHTS FOR FY2014 Sales 31.4% 14,771 MakanBox Orders 851,904 guests served 25.5% 27.7% (FY2014 vs FY2013) (FY2013: 11,771) (FY2013: 667,245) │ Schools │Churches │Community Centres │Government bodies KEY DRIVERS • Rise in number of repeat customers • Higher demand for MakanBox • Substantial
Slide 20: Highlights for FY2014
HIGHLIGHTS FOR FY2014 Tingkat Services Launch of Fourth Brand Healthy Bites for and in Mass Market & Economical Buffets March 2014 Households KEY DRIVERS • Launched as part of our commitment to continual customer satisfaction ‒ Cater to a wider target audience, whilst keeping a clear focus and commi
Slide 21: Food Retail
FOOD RETAIL 21
Slide 22: Highlights for FY2014
HIGHLIGHTS FOR FY2014 Delivery Retail • Online Order System well • Launched designer sushi received workshop • Japanese Mini Buffet 15.6% • Live Sushi Stations with Catering gaining Sales Chef for corporate popularity functions • 51.4% delivery sales • 9.3% same-outlet sales • 22 outlets in Singap
Slide 23: Expanding Locally and Overseas
EXPANDING LOCALLY AND OVERSEAS 2 central 23 outlets @ 31 Jan 2014 o Opened 6 outlets and 6 additional outlets o PoMo Mall o Funan 30 kitchens discontinued 2 outlets o NTU outlets by o East o NUH o West upon expiry of tenancy o Rivervale Plaza 2016 agreement o Hougang Mall Rivervale Plaza Pasir Ris A
Slide 24: Food and Catering Supplies
FOOD AND CATERING SUPPLIES 24
Slide 25: Importing from Around Asia
IMPORTING FROM AROUND ASIA • Improved cost control through bulk purchases • Effective pricing strategy • Better manage cost fluctuations • Quality assurance • Self-supporting efficiency • Sales to third parties ‒ For continued growth 25
Slide 26: Sustainable Future
SUSTAINABLE FUTURE 6 oe += i 26
Slide 27: Favourable Externalities
FAVOURABLE EXTERNALITIES Growing GNI per Capital More HDB flats under Growing MICE events Increasing Affluence construction CAGR: CAGR: 4.9% 14.6% CAGR: 28.0% Source: Singstat Source: HDB Annual Report 2012 & 2013 Source: Singapore Tourism Board • Increasing propensity to • More flats expected to •
Slide 28: Future Plans
FUTURE PLANS ONGOING EFFORTS TO CONSOLIDATE BUSINESS OPERATIONS Capacity: 20,000 to 30,000 guests/day Phase 3 @ 30B Quality Road Capacity: 15,000 to Land area: approx. 122,150 sq ft 20,000 guests/day Proposed Built-in area: approx. 300,000 sq ft Phase 2 @ Status: Pending approval for a 1 Enterprise
Slide 29: Clear Growth Strategies
CLEAR GROWTH STRATEGIES FOOD & CATERING SUPPLIES FOOD RETAIL Expand services to external parties Increase product range Open more outlets FOOD CATERING Explore franchise opportunities Innovate for umisushi in Singapore New catering brands Develop and launch new concepts New catering concepts Increas
Slide 30: Why Invest in Neo Group?
WHY INVEST IN NEO GROUP? 30
Slide 31: In Summary…
IN SUMMARY… Operational Capacity efficiencies driven by Increase to SOUND Strong Brand drive Mechanisation Recognition FUNDAMENTALS and Economies of Automation Scale Record Dividend Over 12% Over 100% Payout of at least SOLID net profit margin growth in net 60% PERFORMANCE for FY2014 profit for FY20
Slide 32: Thank You
THANK YOU 32