Analyst Meeting Q119 Financial Performance Disclaimer Statements - - PowerPoint PPT Presentation

Analyst Meeting

Q1’19 Financial Performance

Disclaimer

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Financial Performance Core Strategy Updates Q2’19 Business Updates

Agenda

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Financial Performance

Business Update New Business Segment Grouping and Additional Provisions

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Segment Regrouping Provision for retirement benefits When: Q1’19 Impact to account treatment: Re-group segment report for Q1’19 and Q1’18 into 3 main segments

• Beverage: All beverages including C-Vitt and Calpis
• Personal Care: Babi Mild, Twelve Plus, Exit
• Others: OEM, Healthcare, Confectionary, Other

Impact to Financial Statement:

• No impact

When: Q2’19 (May 2019) Impact to account treatment: Set up additional provision for retirement benefits Impact to Financial Statement: Recognize expenses approximately 100.6 million baht in the consolidated financial statements

Q1’ 19 Financial Highlights – by Segment

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• Net profit* +13.4% YoY
• Net profit margin** at

14.0% vs. 12.8% in Q1’18

• Favorable GM at 34.8%

improved by 270 bps YoY from “Fitness First” project driving overall costs down

• CLMV

+11.8% at constant FX, reported Net sales +0.8%

• PC Int’l sales +31.6%

mainly from Babi Mild launch in Vietnam

• OEM +13.8%

driven by OEM-Bottle sales (+44.5% YoY & 4% QoQ) after completion of cold tank repair in Q2’18, however partly offset with OEM-PC

• Healthcare 19.5%

driven by Banner and Tard 4

• Twelve Plus +22.2%

driven by momentum of Cool Powder and Perfume Mist launched last year.

• Babi Mild -7.8%

driven high last year stock build-up to prepare for company name change

• C-Vitt

+148.9% maintained no. 1 position in functional drinks for 3 consecutive quarters since Q3’18

• Chalarm

+25.7% continued strong growth momentum of Chalarm Black Galingale

• Som In-Sum

+21.6%

• Peptein

Launch Peptein Plus (NPD) in Feb’19

Thailand Beverages

Net Sales: THB 4,388M

4.0%

Thailand Personal Care

Net Sales: THB 564M

3.4%

Others (OEM/ Health care/ Confectionary)

Net Sales: THB 397M

19.2%

International

Net Sales: THB 1,018M

0.3%

At constant FX:

8.6 %

Net Profit*

THB 888M

14.0%

Net Profit Margin**

Remark : * Net Profit attributable to owners of the parent ** Net Profit attributable to owners of the parent to Total Revenue from Sales

Total Revenue from Sale 6,366M (+4.2%YoY) driven by Energy Drinks-Herbal Variants, C-Vitt and OEM-Bottle sales

(15.1%) (13.9%) (5.6%) (6.9%) Q1'18 Q1'19 32.1% 34.5% 34.8%

1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400

Q1'18 Q4'18 Q1'19

783 888 12.8% 14.0%

7.5% 8.5% 9.5% 10.5% 11.5% 12.5% 13.5% 14.5% 100 200 300 400 500 600 700 800 900 1,000

Q1'18 Q1'19 To the owner of the parents Total Revenue Growth 2.7%

Revenues Gross Margin SG&A Net Profit

Q1’19 Financial Highlights

Admin Exp Selling Exp  Net Profit Margin

6,340 6,512

Q1'18 Q1'19

+2.7% +0.3%

(1,262) (1,322)

 Other Income (20.7%) (20.8%)

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Net Sales Analysis: Thai Beverages

+21.6%

SALES GROWTH YOY Chalarm Black Galingale Turnaround Chalarm brand Continued Success of Campaign “Aroi Jing Mai Manoh” through Activation promotion nationwide Continued reinforcing brand awareness and ensure adequate supply

+148.9%

SALES GROWTH YOY

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+25.7%

SALES GROWTH YOY

Focus on below-the-line activities

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Net Sales Analysis: Thai Beverages

37.2%

MARKET SHARE Sponsorship in both music (Bodyslam concert) and sports (World Super Flyweight Boxing Championship) Communication campaign “Poo Klar LIPO” with local activations (emphasize of Japan heritage)

8.6%

MARKET SHARE

Focus more on online channels and below-the-line activities

Launch new formula Peptein Plus in Mar’19 with Impressive performance in 7-11

4.2%

MARKET SHARE

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+22.2%

SALES GROWTH YOY

Net Sales Analysis: Thai Personal Care

Babi Mild White Sakura Massive Trial Campaign in Feb’19

Twelve Plus x BNK48 Cosmetic Range Special Collaboration in Feb’19

Summer Campaign Launched in Feb’19

• 7.8%

SALES GROWTH YOY The Launch of EXIT x BNK48 Special Collaboration in Jan’19

+22.3%

SALES GROWTH YOY EXIT x BNK48 Collectable Premium in Feb’19

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Balance Sheet (as of 31 Mar 2019)

THB 23,433mn THB 23,456mn

ASSETS (THB mn) As at 31 Mar 2019 As at 31 Dec 2018 Cash and cash equivalents 3,840 4,486 Current investments 2,596 3,500 Trade and other receivables 3,209 3,030 Inventories 1,389 1,557 Other current assets 79 67 Total Current Assets 11,113 12,640 Net PP&E 7,370 6,518 Long term investments 3,575 2,608 Other assets 1,375 1,690 Total Non-Current Assets 12,320 10,816 Total Assets 23,433 23,456 LIABILITIES and EQUITIES (THB mn) As at 31 Mar 2019 As at 31 Dec 2018 Trade and other payables 3,955 4,131 Other liabilities 1,187 1,022 Total Liabilities 5,142 5,153 Issued and paid-up share capital 3,004 3,004 Share Premium 11,848 11,848 Retained earnings 3,285 3,298 Surplus on business combination under common control 353 353 Other components of SE (423) (415) Non-Controlling Interest 224 215 Total Shareholders' equity 18,291 18,303 Total Liabilities & Equity 23,433 23,456

18,291 18,303 553 552 4,589 4,601 12,320 10,816 11,113 12,640 As at 31 Mar 2019 As at 31 Dec 2018

Current assets Non-current assets Short-term loans Other current liabilities Non-current liabilities Shareholders' equity

Key Changes in Balance Sheet Items

• Total assets: Decrease by THB 23mn from Operation

: THB 646mn decrease in cash and cash equivalents : THB 168mn decrease in inventory : THB 304mn decrease in other assets : THB 179mn increase in trade and other receivables. : THB 64mn increase in Net investments (Move short term to long term investment) : THB 852mn increase in PPE

• Total liabilities: Decrease by 11mn

: THB 176mn decrease in trade and other payables : THB 165mn increase in other liabilities.

• Shareholders’ equity: increased by THB 12mn

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Cash Flows and Key Ratios

12 Cash Flow Movement

• Operating CF: THB 1,039mn cash

inflow from 1) THB 897mn Net profit 2) THB 232mn Depreciation

• Financing CF: THB 910mn cash
• utflow from

1) THB -900mn Dividend payment

Cash Flow (as at 31 Mar 2019) Key Financial Ratios

Units: THB mn

Notes: ROE and ROA are annualized

4,486 3,840 1,039 Beginning cash and cash equivalents (31 Dec 2018) Net cash from

• perating

activities Net cash from financing activities Net cash used in investing activities Ending cash and cash equivalents (31 Mar 2018) (910) (775)

• Investing CF: THB -775mn cash
• utflow from

1) THB -800mn PPE acquisition 2) THB -18mn Investment in debt securities’ 3) THB 48mn interest received Q1'19 Q1'18 Liquidity Ratios Current ratio (times) 2.4 0.6 Number of days of inventory 32 39 Collection period (days) 43 43 Accounts payable (days) 43 43 Profitability Ratios Gross profit margin (%) 34.8 32.1 EBITDA margin (%) 21.0 20.2 Net profit margin for the period (%) 14.1 13.1 Net profit margin attributable to owners of the parent (%) 14.0 12.8 Return on equity (%) - trailing 28.3 67.0 Return on assets (%) - trailing 15.8 16.8 Other Ratios Total debt to equity (times) 0.3 3.1

Core Strategy Updates

Production Efficiency – New facilities

• New glass factory (SGA2)
• New factory in Myanmar
• New cullet treatment lines
• Total Productive Maintenance

(Increase capacity without major investment in new production line)

Business Update: Core Strategies Progress Update

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Strengthen domestic presence in broader non-alc. beverages and expand PC Leverage market-leading position in Thailand to sustain and expand to

• verseas markets

Focus on cost-efficiency and margin enhancement through NRM principle

Maintain Energy Drink Market Share (Value) : Q1’19

53.7%

Grow Functional Drink Market Share Q1’18  Q1’19

28.3%35.6%

Personal care sales growth in Q1’19 :

+6.4%

Total CLMV sales growth for Q1’19 (at constant FX):

+11.8%

International PC sales growth For Q1’19:

+31.6%

OEM Bottle sales – Improve margin

• verall beverage by sharing fixed costs

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Fit Fast Firm

Q1’19 GM = 34.8%

+270bps YoY

+44.5%YoY

Continued impact in Q1’19: Bev CLM sales growth for Q1’19 (at constant FX):

+10.7%

2019 “Fit Fast Firm” Project ►Reap benefits from projects implemented in 2018 ►Increase efficiency through new cullet treatment lines ►New lighter weight bottles ►Warehouse and distribution optimization ►OEM-PC initiatives

Q2’19 Business Updates

Update Activities Q2’19

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New LINE OA for M-Point collection campaign

Myanmar Update

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JAN’19 FEB’19 Mar’19

Construction Thilawa progress is on track

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Thilawa Site

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Thank you