Sappe Public Company Ltd · SET:SAPPE
Sappe Public — FY2022 Earnings Presentation
49 slides from Sappe Public's earnings presentation, 2023
Slide 1: Performance Highlights 2022 & Direction 2023
Performance Highlights 2022 & Direction 2023 SAPPE PUBLIC COMPANY LIMITED
Slide 2: Agenda
1. Financial Performance Y2022 Agenda 2. Business Updates 3. Strategy & Direction 2023 2
Slide 3: Who We Are
WHO WE ARE SAPPE is well-recognized as the leader of innovative drinks and pioneer of functional drinks in Thailand. Sappe has been running business with its determination that “We better people’s lives through our innovative spirit.” The company applies innovations to drive the business creatively
Slide 4: Sappe Performance Consolidation
Sappe Performance Consolidation Sappe PCL SAPPE Europe SAPPE HOLDING (60%) (100%) ALL COCO (51%) Domestic International OEM Danone Sappe (25%) Own Brands Own Brands M-Intelligence (16.2%) WOPE (60%) Distributor Distributor Dormant Company • Sappe HK • Sappe HK Trading • Sappe China Collaborate 4
Slide 5: Sappe Milestones
Sappe Milestones 2001 2006 2016 2021 Entered into beverage Introduced “Sappe Beauti Drink”, Invest 40% in a subsidiary, Collaborated with Workpoint manufacturing and distribution our first functional drink brand, to All Coco Group Co.,Ltd to Entertainment Public Company business by introducing famou
Slide 6: Product Categories
PRODUCT CATEGORIES Functional Functional Healthier RTD Juice Drinks Drinks Powders Snacks & Others No. 1 market share in No. 1 Functional • Juice drinks with inclusion • Beauti Jelly in pouch • Preaw - ready to drink value in TH Coffee volume in TH (Nata de Coco & Aloe Vera) • Zea Max, fish snack 90
Slide 7: 1. Financial Performance Y2022
1. Financial Performance Y2022 7
Slide 8: Q4'22 Key Financial Highlights
Q4’22 Key Financial Highlights Q4’22 Total Revenue Q4’22 Gross Margin 1,067.2 MB 40.7% +19.1% YoY +1.4% pts YoY Q4’22 SG&A (%) Q4’22 Net Profit 39.6% 27.5% 154.3 MB 27.5% 25.7% -12.1% pts YoY +178.7% YoY 8
Slide 9: All Time High Revenue Breakdown & Net Profit
All Time High Revenue Breakdown & Net Profit Revenue Net Profit 33 65 35 23 63 37 21 26 67 58 42 54 46 77 % 79 % 74 % % % % % % % % % % % % % % 2,826.9 3,299.5 3,268.1 3,444.2 4,566.4 818.7 1,279.3 1,031.7 5,000.0 35.0% 32.6% 700.0 16.0% 4,500.0 +32.6% YoY 30.0% 14.3% 15.0% 4,000.0 IB +57.2% YoY +59
Slide 10: Cost of Goods Sold by Quarter
Cost of Goods Sold by Quarter Utilization Rate FY2022 %COGS was at 59.2% lower than last year at -1.5 pts. However, if we normalize %COGS (Effect FX & RM/PM -2.1 pts. was excluded ) the %COGS total will lower than last year -3.5 pts. *Normalize FX & RM/PM was calculated by using FX rate and RM/PM un
Slide 11: SG&A
SG&A Selling Expenses Admin Expenses FY2022 • %Selling expenses decreased (-0.5% YoY) from logistic costs in export markets are starting to drop (which offset with Other Income) • Admin Expenses increased from last year by +34.4% YoY 11
Slide 12: Q4'2022 Revenue 1,031 Million Baht
Q4’2022 >90 1,031 Million Baht COUNTRIES TERRITORIES 12
Slide 13: FY2022 Revenue 4,566 Million Baht
FY2022 >90 4,566 Million Baht COUNTRIES TERRITORIES 13
Slide 14: Q4'2022 (YoY) Top Line Growth by Regions
Q4’2022 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Q4’2022 America -6.6% +265.1% ME & 1,031 Million Baht Others +13.9% Asia +29.3% Thailand -11.3% 14
Slide 15: Y2022 (YoY) Top Line Growth by Regions
Y2022 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Y2022 America -14.8% +148.6% ME & 4,566 Million Baht Others +44.3% Asia +56.1% Thailand -12.9% 15
Slide 16: Sales History by Region
Sales History by Region Asia Thailand 700 350 600 300 500 250 400 200 300 150 FY2022 200 100 100 50 - - Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 ME&Others Europe America 200 250 100 200 80 150 150 60 100 100 40 50 50 20 - - - Q1'21 Q2'21 Q3'21 Q
Slide 17: 2. Business Updates
2. Business Updates 17
Slide 18: International Markets
International Markets 18
Slide 19: International Business Journey
International Business Journey 01 02 03 Trading Model Rising Star model Consumer Market (Gems) • Rebate scheme • Expand coverage • Consumer engagement • Minimize investment • In-depth channel • Brand Love • Trade scheme vs Availability, • Brand of Choice Visibility, Affordability 19
Slide 20: Champion Product
Champion Product • Fruit flavored drink with Nata de coco • Full of extra-large Nata de coco cubes • Variety of choices Naturally Yours with Aloe Vera Cube 20
Slide 21: Overseas Key Countries
Overseas Key Countries
Slide 22: Mogu Mogu Philippines Market
PHILIPPINES Market Mogu Mogu Available in >90% of MT stores No. 1 Fruit Juice Drink in CVS CVS Supermarket Channel Contribution TT 10.0% Drug Store Online MT 90.0% 22
Slide 23: Philippines Share in CVS
PHILIPPINES Continuously brand building activities create new fans and stimulate consumption # share in CVS 23
Slide 24: Mogu Mogu Korea Market
KOREA Market Mogu Mogu Hyper Market CVS Health & Beauty No. 1 Fruit Juice Drink in CVS Channel Contribution Supermarket Department Store Discount Store 24
Slide 25: Korea
KOREA Emerge digitalization to build brand value 25
Slide 26: Korea Share in CVS
KOREA The strongest brand in the biggest channel in Korea. # share in CVS 26
Slide 27: Mogu Mogu France Market
France Market Mogu Mogu New Superstar Fruit Juice Drink Channel Contribution 27
Slide 28: France: Mogu Mogu in Stores
FRANCE : MOGU MOGU in Stores 28
Slide 29: France: Mogu Mogu in Stores
FRANCE : MOGU MOGU in Stores 29
Slide 30: Mogu Mogu Indonesia Market
INDONESIA Market Mogu Mogu # share in Indomaret No. 1 Fruit Juice Drink in Indomaret Channel Contribution TT 19.0% MT 81.0% 30
Slide 31: International Marketing 2022
International Marketing 2022 #moju VIEWS Unit Sold Items Sold VIEWS 40M 7M VIEWS ORGANIC Top Trend Twitter 6,500 #CollabsBrand 400K 1-million-time booth visited 50K Posts on ZEPETO 8M #OccasionalConsumption #MenuCreation #FashionBrand 31
Slide 32: Domestic Market
Domestic Market
Slide 33: Domestic Market: Focusing on E-Commerce
Domestic Market… Focusing on E-Commerce Trial the New Categories & Segments New Baseline of E-Commerce Achieving Target Orders >20MB >49,000 +136% Growth YOY +88% Growth YOY ROAS 3.04 (6.67 MB) ROAS 3.13 (1.98 mb) Marketing Campaigns REACH Cartons 48M +7,700 +20% Sell-In Growth in Durbell & Makro 33
Slide 34: NPD - Domestic Launched Y2022
NPD - Domestic Launched Launched Y2022 Feb 23 4 SKUs 1 SKU 34
Slide 35: All Coco
All Coco ») 2022
Slide 36: Outlook: All Coco 2022
OUTLOOK : ALL COCO 2022 FY 2022 Volume Water+6% / Meat +44% +3% • Total Revenue from selling goods in FY 2022 was at 313.27 MB and it had -1% growth (Coconut water volume growth +6%, Meat growth+44%) of Net profit compared with that FY2021 • %COGS decreases 3% mainly by we have increased volume of c
Slide 37: Domestic & International Market
Domestic & International Market International Market Domestic Market • Our partner in Indonesia expanding All Coco products +99% YoY • They double number of café in 2022 2021 : Jakarta (Senayan) and Bali Foodland Villa 2022 : Jakarta (Puri-Indah mall) and Bali (GWK) small store. : All Coco 18 Branch
Slide 38: Event in Q4-2022
EVENT in Q4-2022 • Event – The Cassette • Seasonal Menu 38
Slide 39: 3. Strategy & Direction 2023
3. Strategy & Direction 2023 39
Slide 40: 2023 Outlook
2023 Outlook INTERNATIONAL BUSINESS DOMESTIC MARKET Brand Globalization: Korea First Grow base products Strategic channel Expansion GROWTH >20 NPD (with Seasonal SKUs) Diversify portfolio 25% YOY New Platform Future Growth Future Growth 40
Slide 41: 2023 Outlook: Growth by Region
2023 Outlook GROWTH America Europe 25% YOY +70% +22% ME & Others +25% Asia +17% Thailand +25% 41
Slide 42: Strategics Y2023 International Market
STRATEGICS Y2023 International market STRONG GROWTH from Branding Performance and Channel Expansion. 01 : Upgrade Brand Level in GEMS - Global brand presence - Get deeper into sub. Segment - Optimize investment 02 : Strategic Channel Expansion - Strategic channel - Innovation channel - Digital Gatew
Slide 43: Strategics Y2023 Domestic Market
STRATEGICS Y2023 Domestic market GROWTH ❖ Focus on Core Brands • Strengthen Core brands • Build Brand Love 25% • Focus on Brands Visibility. • Expand Categories ❖ Win NPD • NPD more then 20 SKUs • Tap New User • Explore New Categories 43
Slide 44: Investment for Support Growth
Investment for Support Growth Invested project (complete in Q4:2023) Exploring Projects (2024 – 2025) New Production line speed – 400 BPM Local production (Asia / Euro) New Preform & Blower Machines New production line @ Sappe Factory Automated Warehouse ASRS 2023: Target increase Capacity +30% YoY
Slide 45: Investment Timeline 2023 - 2024
Investment timeline 2023 - 2024 2023 2024 New CAPEX + OPEX 870 MB. Production Line 45
Slide 46: Target Growth 2022-2026
TARGET GROWTH 2022-2026 REVENUE 10,000 MB. 46
Slide 47: Awards 2022
SOUTHEAST << BEST WEPs 54 OOMPAniE TRS) © AWARDS COMPANIES THATLAND ’ SUSTAINABILITY For exemplary practice embracing the Women’s INVESTMENT 2022 Empowerment Principles (WEPs) in Asia-Pacific | Forbes Asia UNDER A l BEST siti l 2022 47
Slide 48: Q&A
Q&A 48
Slide 49: The Innovative Spirit
The Innovative Spirit WWW.SAPPE.COM 49