Analyst Meeting SAPPE PUBLIC COMPANY LIMITED, THAILAND Full-Year - - PowerPoint PPT Presentation

Analyst Meeting

SAPPE PUBLIC COMPANY LIMITED, THAILAND

Full-Year 2016 & 2017 Outlook

28 March 2017

AGENDA:

• 1. Financial Review Q4/2016
• 2. Business Overview
• 3. 2017 Outlook

2

Financial Review Q4/2016

3

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.

• Investments and expenses:

– Investments in capacity expansion & cost-saving projects, implemented since end-2015, drove %COGS down by 4.3 pts. – 40% share purchase of All Coco Group as a long-term prospect – 51% share selling of Sappe Indonesia on temporary basis

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Full-Year Revenue Breakdown

5

▪ SAPPE’s %COGS continued to decrease due to the new production line and cost saving projects during Q4-2015 to Q1-2016.

Cost of Goods Sold by Quarters

6

Gross Profit Margin

(THB mm) 7

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.

Selling Expenses

(THB mm)

8

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 subsidiary.

Admin Expenses

(THB mm) 9

Net Profit Margin

(THB mm)

10

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

Asset Components

(THBmm) 12

Liabilities Components

1.0x 1.2x Nil Nil IBD/E (THBmm) Nil 13

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

Business Overview

15

• No. 1 market share in value in

Thailand (women segment)

• No. 1 coffee volume in Thailand

Production Categories Description Key Brands Sale Structure

Strong Portfolio

2016 Total Sales : THB 2,712.5 MB 16

RTD Coconut Water

“We derive our sale from more than 70 countries around the world”

Europe

Sale structure by geography

Asia

Geographical Overview of Our Market

Indonesia

17 2016 Total Sales : THB 2,712.5 MB

Innovative Milestones

2001 2004 2006 2011 2015 2014 2017

2017 Outlook

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Sappe’s Long-Term Strategy

• In-house product/category

development

• Potential product/brand acquisition
• Regional campaign for Mogu Mogu
• Effective market penetration
• Upgrade strategic countries
• JV for distribution coverage

in a new country

• Open new markets

Existing Product; Existing Network Existing Product; New Network New Product; New Network New Product; Existing Network

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Sappe’s Action Plans

New lineup for domestic markets Go-to-market strategy

• 3 TT market penetrations in Thailand, China & Indonesia

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 – a developed version of TT

format across the country

• Full-year Indonesia growth target at 6%

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

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 discussion with a number of master franchise prospects, with the target of at least 1 Signature Café within 2017

Exhibitions

GULFOOD, DUBAI 125 leads

Exhibitions (cont’d)

FOODEX, JAPAN 71 leads

Exhibitions (cont’d)

EXPOWEST, USA 37 leads

Signature Café Concept

Q&A