Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — Shareholder Meeting (March 2019)
29 slides from Fraser & Neave Holdings Bhd's shareholder meeting presentation, March 2019
Slide 1: F&N Future Ready
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Slide 2: Forward-looking statements disclaimer
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 results, performance
Slide 3: Video presentation: CEO message to shareholders
Dear Shareholders and Stakeholders, 2018 was another year of global and regional uncertainties, as well as a dynamic policy environment locally. Nonetheless, with our commitment to long-term sustainability, we continued to invest in our future, continuing the transformation within our organisation,
Slide 4: F&NHB Group Financial Performance FY 2018
GN FRASER & NEAVE HOLDINGS BHD FY 2018 F&NHB Group Financial Performance
Slide 5: Financial Highlights
Full Year Full Year Financial Highlights Change 2017/2018 2016/2017 Revenue (RM'000) 4,109,859 4,101,374 0.2% Operating profit (RM'000) 420,240 345,066 21.8% Profit before tax (RM'000) * 422,729 353,713 19.5% Profit after tax (RM'000) 385,096 323,347 19.1% Basic earnings per share (sen) 104.9 88.3 1
Slide 6: Regained stability post-reorganisation
Regained stability post- reorganisation ▪ Revenue marginally higher, up 0.1% from last year. ▪ Improved revenue for 3 consecutive quarters. ▪ Exports from Malaysia continue the year-on-year strong growth in FY2018. ▪ On track to surpass RM500 million goal in 2020. ▪ Operating profit for F&B Malaysia
Slide 7: F&B Thailand delivered marginally higher revenue
Despite the tough environment, F&B Thailand delivered a marginally higher revenue (+0.3%) with significant sales growth of over 20% in Indochina. ▪ Effective trade and marketing execution. ▪ Thai Government released a new regulation that imposed tax on sugar products, which has had some impact on sa
Slide 8: Export Market: Building Exports as Our Third Pillar
EXPORT MARKET: ¥ 68 countries wuata Rule - Building Exports as Our Third Pillar CONTRIBUTION OF EXPORT TOTAL EXPORTS GROWTH FY2018 FY2018 % GROUP i GROUP % Of FSB i F&B 9, 16° even | OPERATING PROFIT 14° 15” MALAYSIA | ~~ THAILAND %o
Slide 9: Dividends
GN FRASER & NEAVE HOLDINGS BHD QO Dividends
Slide 10: Balance sheet and dividends FY2018
FY 2018 FY 2017 Total equity1 (RM'000) 2,312,471 2,132,730 Total assets (RM'000) 3,345,258 3,231,498 Net cash (RM'000) 201,568 45,336 Net assets per share (RM) 6.31 5.82 Gearing ratio 0.15 0.18 1 Includes non-controlling interest ▪ Final single tier dividend of 30.5 sen per share, for approval by sh
Slide 11: Forging Ahead for the Future
GN FRASER & NEAVE HOLDINGS BHD QO Forging Ahead for the Future
Slide 12: Inclusive growth strategy
Our inclusive growth strategy will encompass: EXCELLENCE ▪ Creating value for our people, INNOVATIONS IN EXECUTION consumers, business partners, shareholders and the society Getting we operate in; F&N ▪ Growing our brands and 0 portfolio of products to win in Future more markets; Ready ▪ Growing the
Slide 13: Capital expenditure to elevate product innovation
We have invested approximately RM500 million in capital expenditures to elevate our product innovation capabilities and cost competitiveness. FURTHER CAPITAL EXPENDITURE (CAPEX) INVESTMENTS FOR THE FUTURE: ▪ Allocated RM30million for CAPEX in FY2019 to accelerate innovation and fast-track the develo
Slide 14: 2018 Highlights
GN FRASER & NEAVE HOLDINGS BHD QO 2018 Highlights
Slide 15: New product launches
¢ — 100PLUS Reduced Sugar * — 100PLUS Blackcurrant * — 100PLUS ACTIVE Powder am — > CARNATION Plus ¢ — F&N Ice Mountain Drinking Water GD - so rearor Squeeze Tube ¢ — F&N Lemon Lime way” -_~—s FN Magnolia Barista * F&N SEASONS Soya * F&N SEASONS Juice PASTEURIZED MILK J SEASONS? BGrg @ = of, Pls \
Slide 16: Ice Mountain drinking water 6-tier filtration
EN) IC MOUN(AIN CLEAN LIVING SIMPLIFIED WITH 6-TIER WATER FILTRATION 3K BK "DRINKING WATER Activated = Carbon Filter Cartridge Filter Removes dust, dirt & Removes organic material Removes carbon residue other solid particles & chlorine & certain bacteria Reverse Osmosis Ultra Shield Removes dissolve
Slide 17: Squeeze tube and milk stick packaging
Innovative & differentiated packaging for F&N Sweetened Condensed Milk SQUEEZE TUBE MILK STICK
Slide 18: Increased Convenience
Increased Convenience We have been differentiating our products and packaging to cater to consumers’ demand for greater convenience and flexibility. Launched 100PLUS ACTIVE in powder sachets which are convenient for people who are constantly on the move
Slide 19: Our Awards & Recognition
OUR AWARDS & RECOGNITION MARKETPLACE ENVIRONMENTAL WORKPLACE Malaysia Enterprise OSH Gold Class II Award Malaysia Best Employer Innovation Award 2018 from The Malaysia Society Brand Awards 2018 from Asia IoT Business Platform for Occupational Safety and Health from Employer Branding Institute Brand
Slide 20: Business Outlook
GN FRASER & NEAVE HOLDINGS BHD QO Business Outlook
Slide 21: Our Journey Ahead: F&B Malaysia
OUR JOURNEY AHEAD ▪ The overall market for F&B Malaysia is likely to remain challenging - competitive pricing pressures. ▪ Prioritise the extraction of synergies from our transformation programme. ▪ Expand our global reach for our export market. ▪ Innovation and reinvention will be at the forefront
Slide 22: Our Journey Ahead: F&B Thailand
OUR JOURNEY AHEAD ▪ The overall domestic market for Thailand remains challenging – intense competition. ▪ F&B Thailand commence paying corporate taxes in FY19 after the utilisation of the carried forward losses from non- promoted businesses. ▪ Nonetheless, we will continue to: ▪ build our capacity a
Slide 23: Product Transformation
GN FRASER & NEAVE HOLDINGS BHD QO Product Transformation C)
Slide 24: Sugar excise duty effective 1 April 2019
Government introduction of excise duty 40sen per litre on sugary drinks in the form of Ready-To-Drink packaging on 2 categories: Category CATEGORY 11 Beverages containing sugar or other sweeteners containing sugar > 5grams per 100ml CATEGORY 22 Category Fruit juices and vegetable juices containing s
Slide 25: Products by sugar content versus sugar tax threshold
No sugar tax 5 grams Sugar tax products Magnolia Choco/Straw 9.2g-10.9/100ml F&N CSD Oyoshi Seasons Tea 9.2g–12.8g/100ml 5.8g-10.9g/100ml 5.5g-11.1g /100ml Ranger 17g/100ml Ice 100Plus Seasons Soy 100Plus Reg 6g & 100Plus Active Seasons ASD est Cola Mountain Reduced Sugar 8.0g/100ml (no sugar) Colou
Slide 26: Portion control packs and reformulation
▪ Portion control packs ▪ Most of our products will be ▪ Speed up innovations into healthy (250ml not 325ml cans) reformulated to be <5% sugar product categories, value added for: while delivering original taste. benefits, +Vitamins, etc. ▪ F&N Orange Crush, ▪ Not subjected to soda tax, but ▪ We are
Slide 27: Reformulation challenge and R&D mission
▪ It is a big challenge, given our big portfolio of products. But we have started work way before the government announcement. ▪ We are prioritising our efforts by focusing on product category(ies) according to the significance of impact to our Group. ▪ Learning from international experience, after
Slide 28: Thank You
GN FRASER & NEAVE HOLDINGS BHD THANK YOU EN FORGING AHEAD for the future...
Slide 29: A member of the Fraser and Neave Group
GN FRASER & NEAVE HOLDINGS BHD utr | OM so _ OYOSHI SREENTEA FRYUGEF, A member of the FRASER AND NEAVE Group
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