2 nd Quarter & 1 st Half 2016 Financial Results Disclaimer The - - PowerPoint PPT Presentation

2nd Quarter & 1st Half 2016

Financial Results

Disclaimer

The presentation is prepared by Super Group Ltd (“Super” or “the Group”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Group in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Group, its business, its current or historical operating results or its future business prospects. The statements are not and should not be construed as management’s representation on the future performance of Super. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition, pricing actions, continued volatility in commodity costs, increased costs of sales, risks from operating globally and tax law changes. This presentation is provided without any warranty or representation of any kind, either expressed

• r implied. The Group specifically disclaim all responsibilities in respect of any use or reliance of

any information, whether financial or otherwise, contained in this presentation.

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Content

 Performance Summary for 2Q16  Segmental Review  Trends Analysis  Balance Sheet Highlights  Appendix

• Profit & Loss Highlights

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Performance Summary for 2Q16

Robust financial resources & initiatives to ride through challenges

 Resilient Branded Consumer (“BC”) sales amidst challenging market conditions

• BC sales reported 6% YoY decline from effects of weaker regional currencies
• In constant currency terms, BC sales would have declined by 3%
• Improved sales from certain key markets showcase BC sales resilience amidst challenging market conditions

 Food Ingredients (“FI”) sales made inroad into new markets

• Expanded footprint now includes markets such as Europe and the Middle East

 Income generating capability remains intact

• PATMI fell 7% to S$9.8m
• However, PATMI margin stable at 8.5% (2Q15:8.4%) while EBITDA margin improved to 16.9% (2Q15:16.4%)

 Strong financial position with cash generative business model

• Net cash from operating activities increased to S$19.5m (16.9% of revenue )
• Net cash balance grew to S$116.5m (31/12/15: S$96.6m)
• Gearing remains low; Debt-to-Equity ratio at 0.24 times

 Declare interim dividend of 1.0SG cent per share

• Consistently paying ≥ 50% of net profit as dividends since FY2010

 Initiatives to improve long term performance

• Consolidation of non-dairy creamer (“NDC”) facilities to improve production efficiency and reduce operating

costs

• Continue to push through Branding, Innovation & Diversification (“BID”) strategy

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Performance Summary for 2Q16

Resilient income generating capability and operating cash flows

Segmental Review

BC remains major revenue contributor

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Super’s integrated business model Downstream

BC segment

Upstream

FI segment FI accounts for 35% of sales (2Q15: 36%) BC accounts for 65% of sales (2Q15: 64%)

Segmental Review – BC Sales

Improved sales in key markets showcase BC sales resilience

Revenue declined 6% YoY to S$75.0m

• Declined 3% in constant currency terms; depreciation in regional

currencies such as Thai Baht, Malaysian Ringgit and Chinese Renminbi against the Singapore Dollar adversely affected reported Group revenue

Southeast Asia

• Sales declined 6% YoY

– Mainly due to lower sales in Myanmar from lower selling prices to distribution partner to mitigate weaker Kyat which affected reported Myanmar sales

• Partially offset by

– Stronger sales in Thailand, Singapore and the Philippines – Thailand improved following the launch of ESSENSOTM Microground Coffee in May 2016 despite continued competitive market conditions, weak consumer sentiments and local currency

East Asia

• Sales improved 15% YoY

– Stronger sales driven by China

Others

• Sales dipped 25% YoY

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Segmental Review – BC Sales

Coffee remains as core sales driver

• Coffee contributed 78% of BC revenue (2Q15: 79%)
• Cereals contributed 7% (2Q15: 8%)
• Product Innovation and Branding will remain the focus to

drive longer term growth in other segments from 2H2016

• nwards

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Segmental Review – FI Sales

Diversified and expanded footprint from new markets

Revenue dipped 12% YoY to S$40.0m Southeast Asia

• Sales declined 29% YoY

– Decline led by Indonesia and the Philippines – Affected by forex and slower demand owing to competitive market conditions and weaker consumer sentiment

East Asia

• Sales improved 10% YoY

– Increase in sales driven by China

Others

• Sales increased to S$2.9m (2Q15:S$0.2m)

‒ New markets such as Europe and the Middle East contributed to increased sales

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Segmental Review – FI Sales

Instant coffee & non-dairy creamer are major revenue contributors

• Non-dairy creamer (“NDC”) accounted for 49% of FI

revenue while soluble coffee powder (“SCP”) accounted for 46%

• Premium products to drive sales

 Maintain focus on value-adding to existing products and rolling-out more premium products

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Trend analysis – Revenue ,PATMI Margin and EBITDA Margin

Income generating capability remains intact

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S$m 121.7 125.5 121.0 141.1 119.4 115.0 11.2% 8.4% 6.1% 11.1% 9.7% 8.5% 20.1% 16.4% 13.0% 19.6% 17.9% 16.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Revenue, PATMI Margin and EBITDA Margin

Revenue Net profit margin EBITDA margin %

• PATMI and EBITDA margins improved to 8.5% (2Q15: 8.4%) and 16.9% (2Q15: 16.4%)

respectively, indicating resilient income generating capability

PATMI margin

Trend analysis – Operating Cash Flows

Cash generative business model intact

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S$m % 5.6 18.9 11.5 33.6 25.5 19.5 4.6% 15.1% 9.5% 23.8% 21.3% 16.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Operating Cash Flows and Operating Cash Flows as a Percentage of Revenue

Operating cash flow Operating cash flow as a % of revenue

• Cash generative business model

‒ 2Q16 net cash from operating activities grew to S$19.5m (i.e. 16.9% of revenue) from S$18.9m (i.e. 15.1%

• f revenue) in 2Q15

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S$m 528.3 500.7 510.4 521.9 515.1 507.0

82.4 70.4 71.0 96.6 115.4 116.5

40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 400.0 420.0 440.0 460.0 480.0 500.0 520.0 540.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Net Asset Value* and Net Cash Balance

Net asset value Net cash S$m

Trend analysis – Net Asset Value and Net Cash Balance

Strong Financial Position

• Net cash balance increased to S$116.5m as of 30 June 2016
• Financial resources to support growth strategies and ride through challenges

*Net Asset Value = Equity attributable to the owners of the Company

balance

Balance Sheet Highlights

• Property, plant and equipment decreased due to

depreciation charges and currency realignment

• Inventories decreased due to lower raw material

balances at period end

• Collection of trade debts and compensation monies

received resulted in the decrease in trade and other receivables

• Cash and bank balances increased to S$144.3m
• Trade and other payables decreased due to payment
• f accrued expenses
• NAV per share stood at 45.49 SG cents
• D/E ratio of 0.24 times; low gearing

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In S$’000 Jun 16 Dec 15 Non-Current Assets Property, plant and equipment 271,253 257,387 287,965 273,698 Current Assets Inventories Trade and other receivables Cash and bank balances 372,013 102,907 120,005 144,336 377,422 106,306 140,759 123,944 Current Liabilities Trade and other payables Bank loans 116,139 78,274 27,885 119,639 80,523 27,354 In S$’000 Jun 16 Dec 15 Non-Current Liabilities Deferred tax liabilities 7,697 7,237 7,369 7,298 Shareholders’ Equity 506,977 521,873 Ratios NAV per share (cents) Debt-to-equity ratio (times)* Current ratio (times) Trade Receivables turnover (mths) Inventory turnover (mths) Trade Payables turnover (mths) 45.49 0.24 3.20 2.74 4.34 1.03 46.80 0.24 3.15 2.49 4.14 1.08

*: Computed based on Total Liabilities divided by Total Equity.

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Appendix

Profit & Loss Highlights

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Financial Highlights (S$’000) 2Q16 2Q15 Change (%) 1H16 1H15 Change (%)

Revenue 115,006 125,531 (8) 234,437 247,200 (5) Gross Profit 42,951 44,573 (4) 87,728 88,512 (1) Gross Profit (%) 37 36 1^ 37 36 1^ Selling & Distribution Expenses (16,587) (15,248) 9 (31,242) (29,114) 7 General & Administration Expenses (14,612) (13,835) 6 (29,171) (27,520) 6 Profit from Operating Activities 11,752 15,490 (24) 27,315 31,878 (14) Net Finance Income/(Cost) 637 (464) NM (481) 964 NM Net Other Income 637 375 70 1,331 1,046 27 PATMI* 9,812 10,500 (7) 21,381 24,130 (11) PATMI* (%) 9 8 1^ 9 10 (1)^ EBITDA 19,387 20,590 (6) 40,762 45,017 (9) EBITDA (%) 16.9 16.4 0.5^ 17.4 18.2 (0.8)^ Net Cash from Operating Activities 19,488 18,897 3 44,977 24,514 83 Net Cash from Operating Activities (%)+ 16.9 15.1 1.8^ 19.2 9.9 9.3^ Earnings per share (cents) 0.88 0.94 (6) 1.92 2.16 (11)

NM Not meaningful ^ Denote percentage points. * Profit attributable to owners of the Company

+ Expressed as a percentage of revenue