Sappe Public Company Ltd · SET:SAPPE
Sappe Public — FY2016 Earnings Presentation
29 slides from Sappe Public's earnings presentation, Mar 28, 2017
Slide 1: Analyst Meeting: Full-Year 2016 & 2017 Outlook
Analyst Meeting SAPPE PUBLIC COMPANY LIMITED, THAILAND Full-Year 2016 & 2017 Outlook 28 March 2017
Slide 2: Agenda
AGENDA: 1. Financial Review Q4/2016 2. Business Overview 3. 2017 Outlook 2
Slide 3: Financial Review Q4/2016
Financial Review Q4/2016 3
Slide 4: 2016 Key Highlights
2016 Key Highlights • Top-line revenues: – Majority of sales & marketing resources in Q3-Q4/2016 were reallocated from domestic to international markets. – International business contributed +14% YoY growth. – Domestic markets dropped by -8% YoY, mainly due to National Mourning period in Q4/2016. •
Slide 5: Full-Year Revenue Breakdown
Full-Year Revenue Breakdown 5
Slide 6: Cost of Goods Sold by Quarters
Cost of Goods Sold by Quarters ▪ SAPPE’s %COGS continued to decrease due to the new production line and cost saving projects during Q4-2015 to Q1-2016. 6
Slide 7: Gross Profit Margin
Gross Profit Margin (THB mm) 7
Slide 8: Selling Expenses
Selling Expenses (THB mm) SAPPE’s Selling Expenses in first half were significantly increased but remain in the budget through out the year ▪ Domestic sales and marketing campaigns for summer. ▪ Regional campaigns for international business for Q1-Q4/2016. 8
Slide 9: Admin Expenses
Admin Expenses (THB mm) Administration Expenses 2016 was up YoY by 0.6 percentage points, driven by: 1. Organic growth of normal expenses, such as employee salaries 2. Investment in infrastructure to support its international business growth, including manpower, IT system and a new office of a subsi
Slide 10: Net Profit Margin
2012 2013 Net Profit Margin 2014 2015 2016 Mm Net Profit #re=Net Profit Margin ; 15.0% L 13.0% 13.4% 10.2% L 11.0% L 9.0% L 7.0% | 5.0% L 3.0% L 1.0% 89.0 54.3 L 1.0% Q4- 2015 Q4- 2016 SLAG,
Slide 11: Net Profit Margin of the Parent Company
Net Profit Margin of the Parent Company (THB mm) ▪ The net profit of the parent company was slightly higher than consolidated net profit due to net loss in Sappe Indonesia. 11
Slide 12: Asset Components
Asset Components MES APPEA (THBmm) 3000.0 2,452 2,275 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2012 2013 2014 2015 2016 ™Cash and current Investment mAccount receivable mi Other recievable minventory m™Plant property andequipment mi Intangible asset = Other asset —SVLARE,
Slide 13: Liabilities Components
Liabilities Components IBD/E 1.0x 1.2x Nil Nil Nil (THBmm) 13
Slide 14: Capital Expenditure
Capital Expenditure (THBmm) ▪ The company had no mega capital expenditure project plan in year 2016 only a small cost saving projects through the year and a preventive maintenance expenses. 14
Slide 15: Business Overview
Business Overview 15
Slide 16: Strong Portfolio
Strong Portfolio Production Categories Description Key Brands Sale Structure No. 1 market share in value in Thailand (women segment) 2016 Total Sales : No. 1 coffee volume in Thailand THB 2,712.5 MB RTD Coconut Water 16
Slide 17: Geographical Overview of Our Market
Geographical Overview of Our Market Sale structure by geography Europe 2016 Total Sales : THB 2,712.5 MB Indonesia Asia “We derive our sale from more than 70 countries around the world” 17
Slide 18: Innovative Milestones
Innovative Milestones 2006 2011 2014 2004 2015 2001 2017
Slide 19: 2017 Outlook
2017 Outlook 19
Slide 20: Sappe's Long-Term Strategy
Sappe’s Long-Term Strategy - In-house product/category development - Potential product/brand acquisition New Product; Existing Network New Product; New Network - Regional campaign for Mogu Mogu - JV for distribution coverage - Effective market penetration in a new country - Upgrade strategic countri
Slide 21: Sappe's Action Plans
Sappe’s Action Plans New lineup for domestic markets Go-to-market strategy • 3 TT market penetrations in Thailand, China & Indonesia
Slide 22: TT Market Penetrations
TT Market Penetrations • Newly appointed TT distributor with far more outlet coverage • Full-year domestic growth target at 5% • Investments in both markets, particularly to boost up TT coverage, via our newly set-up subsidiary • Full-year China growth target at 20% • Coverage expansion in local MT
Slide 23: Mogu Mogu To Go
Mogu Mogu To Go Key Concept: – Affordable price point, at a smaller size of 180 ml., for TT market only – Different flavors to avoid cannibalization – Currently limited version to test the concepts in selective country
Slide 24: All Coco Group: Business Update
All Coco Group: Business Update International Distribution : – Working on FDAs in selective countries Industrial Products / Bulk Sale : – Currently the fastest-growing segment – Bulk coconut water sold to global players & bulk coconut flesh in Makro, Thailand International Franchise : – Under discus
Slide 25: Exhibitions
Exhibitions GULFOOD, DUBAI 125 leads
Slide 26: Exhibitions (cont'd)
Exhibitions (cont’d) FOODEX, JAPAN 71 leads
Slide 27: Exhibitions (cont'd)
Exhibitions (cont’d) EXPOWEST, USA 37 leads
Slide 28: Signature Café Concept
Signature Café Concept
Slide 29: Q&A
Q&A —PLRF Designed to Innovate