Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2006 Earnings Presentation
16 slides from Fraser & Neave's earnings presentation, 2006
Slide 1: Fraser and Neave, Limited Results Briefing FY2006
Fraser and Neave, Limited Results Briefing FY2006
Slide 2: Review by Operations: Food & Beverage
Review by Operations Food & Beverage Mr Tan Ang Meng
Slide 3: Financial Results
FNHB Financial Results ¾ Revenue growth affected by weak consumer sentiments ¾ PBIT improved by 6% ¾ PAT improved by 10% due to lower tax ¾ 6th consecutive year of record profit RM million 2006 2005 +/- Revenue 1,943.6 1,935.1 +0.4% PBIT 193.7 182.9 +6.0% PBT 194.2 183.8 +5.7% PAT 153.6 139.3 +10.3%
Slide 4: Financial Results – Revenue
FNHB Financial Results – Revenue ¾ Overall revenue +0.4% ¾ Poor soft drinks sales affected overall revenue 2,400 +33.5m 1,991.0m -45.1m -2.3m +22.4m 1,943.6m 2,000 1,935.1m 1,600 1,200 800 400 - Revenue Dairies Glass Soft Drinks Prop/Oth Revenue RMm 04/05 05/06 Slide 4
Slide 5: Financial Results – PBIT
FNHB Financial Results – PBIT ¾ Another record PBIT (+6% vs LY) ¾ SMG (China) recorded encouraging PBIT of RM1.8m (vs loss of RM8.5m LY) 240 +8.1m 204.2m -10.5m +11.7m 193.7m 200 182.9m +1.5m 160 120 80 40 - RMm PBIT 04/05 Dairies Glass Prop /Oth Soft Drinks PBIT 05/06 Slide 5
Slide 6: Revenue & PBIT – by Operations
FNHB Revenue & PBIT – by Operations Revenue – RM1.94 billion Property /others 3% Soft Glass Drinks 16% 50% PBIT – RM193.7 million Dairies Property 31% /Others 13% Soft Drinks 52% Glass 14% Dairies 21% Slide 6
Slide 7: Growth: Last 5 Years
FNHB Growth: Last 5 Years ¾ Consistent revenue growth and profit performance ¾ PBIT growth slowed due to poorer soft drinks performance Revenue PBIT 2,400 240 CAGR 6% +28% CAGR 12% +27% +57% +48% 1,800 +14% 180 +6% +26% +15% 1,200 120 600 60 - - RMm 01/02 02/03 03/04 04/05 05/06 RMm 01/02 02/03 * 03
Slide 8: Operational Review – Soft Drinks
FNHB Operational Review – Soft Drinks Review FY2005/06 ¾ 7% average volume growth for past 4 years was interrupted by -7% decline in 2006 ¾ CSD fell -16% whilst Isotonic registered +2% ¾ CSD market share remained at 63%, Isotonic at 92% 200 50 ¾ Sales pick up Sales volume in Q4 160 40 Qtr 1 : +8% 12
Slide 9: Operational Review – Dairies
FNHB Operational Review – Dairies Review FY2005/06 ¾ Domestic canned milk sales affected by weak consumer sentiment, -6% down ¾ Export sales improved +37% ¾ Pasteurised & ice cream sales up 10% vs LY (19% of total domestic dairies rev.) 100 8 80 Domestic SCM sales 6 60 4 39.4 40.9 40 PBIT 37.8 32.7
Slide 10: Operational Review – Glass
FNHB Operational Review – Glass Review FY2005/06 ¾ China turnaround (improved customer base, sales & selling prices) ¾ Better Vietnam performance ¾ Thailand plant construction on schedule 80 350 Sales volume 280 60 210 MVGL & MGP 40 furnaces PBIT rebuilt, China 30.1 30.3 losses 140 26.4 20 MGP furna
Slide 11: Operational Review – Property
FNHB Operational Review – Property Phase 1 : Fraser Park Project ¾ 5-6 storey shop-office units fully sold (80 units, GDV = RM180m) ¾ % completion recognition, ~ 83% YTD ¾ Target completion by end of this year Phase 2 : ZON.e@Fraser Business Park ¾ Dedicated IT hub launched in Sept’06, pre- sold RM2
Slide 12: Dividend per Share
FNHB Dividend per Share 50.0 Net Gross 45.0 42.0 40.0 35.1 32.7 30.2 30.0 25.3 20.0 20.0 20.0 12.0 12.0 10.0 - sen 2002 2003 2004 2005 2006 Final net dividend at 21.2 sen (gross 29 sen) making total of 32.7 sen (gross 45 sen), +8% vs LY Based on 30/9/06 share price of RM6.20, dividend yield is 7
Slide 13: Financial Summary / Ratios
FNHB Financial Summary / Ratios FY2006 FY2005 PBIT margin 10.0% 9.4% ROE 12.8% 12.2% Net cash (RM) 206.5m 145.5m Per Share NTA (RM) 3.13 3.04 EPS (sen) 40.1 37.0 Net cash backing (sen) 57.9 40.8 Net Dividend (sen) 32.7 30.2 Slide 13
Slide 14: ROS & ROE Trends
FNHB ROS & ROE Trends ¾ Steady improvements in both Return on Sales (ROS) & Return on Equity (ROE) 14.0% 12.8% 12.2% 12.0% 11.1% 10.4% 10.0% 9.0% 10.0% 9.4% 9.0% 8.0% 8.8% 8.1% 6.0% 4.0% 2.0% ROS ROE 0.0% 01/02 02/03* 03/04 04/05 05/06 * Exclude KL Sentral write off Slide 14
Slide 15: Looking Ahead
FNHB Looking Ahead +ve ¾ contribution from Jalan Foss project (Phase II) ¾ contribution from China glass ¾ synergistic benefit & economies of scale from acquisition of canned liquid milk businesses from Nestle -ve ¾ uncertain & cautious consumer sentiments ¾ higher raw materials & packaging costs
Slide 16: Thank You
Thank You