Carabao Group Strictly Private & Confidential May 2019 Corporate Presentation 1Q19 0
Disclaimer The provision herein does not constitute legal advice or investment opinions of any kind, neither is it intended as an offer, solicitation for Carabao Group PCL. (“CBG” or “The Group”) . The information presented within this material is intended to indicate the Group’s operational and financial position at a given period of time and to be used, downloaded, and distributed for analyst briefings, and general meetings with CBG, and to be used for educational material in order to understand CBG’s operation only. The Group makes no representation that all information is complete and accurate for the purpose of producing a projection of CBG’s operations, performance, or financial position and may be susceptible to uncertainty and important changes based on political, economic, strategic, and other such uncontrollable factors. Forward looking statements in this presentation are based on the management’s assumption in light of information currently available and obtainable, as well as the aforementioned/unmentioned risks and uncertainties. CBG’s actual results may vary materially from those expressed or implied in its forward-looking statements, and no assurance is made as to whether such future events will occur. The Group accepts no liability whatsoever for any loss arising directly or indirectly from the use or endorsement of any information contained herein by any users and/or third parties. 1
ENDE DED D 31 1 MARC RCH H 2019 19 TOTAL SALES ฿ 3,361 mn ENERGY 1%YoY DRINK SALES CLMV 57% from SALES OVERSEAS ฿ 1,444 13%YoY EBITDA ฿ 667 mn 99%YoY 1Q19 9 AT A GLA LANCE NCE
Total Sales Sales by Quarter (THBmn) 1Q2019 Growth Portion Domestic sales GPM Overseas sales Sales YTD (THBmn) FY2018 Growth Portion Domestic sales GPM Overseas sales 3
Sales (THBmn) & GPM (%) by Business DOMESTIC: BRANDED OWN OVERSEAS GPM GPM DOMESTIC: DISTRIBUTION for 3 rd PARTY DOMESTIC: BRANDED OEM GPM GPM 4
Domestic Sales Domestic Slow down in branded products sales due to some delay in key marketing activities to the rest of the year DOMESTIC SALES BY CHANNEL BREAKDOWN OF DOMESTIC GPM BY BUSINESS YoY as a result of economies of scale and reduction of key material prices YoY due to gradual adjustment for selling price of Coffee RTD YoY due to a product mix 5
Overseas sales Overseas strong present in CLMV markets and new markets added thanks to the fame of Carabao Cup 1,019 THB mn FY16 FY17 FY18 %YoY 2Y-CAGR 1Q18 4Q18 1Q19 %YoY %QoQ CLMV 2,546 3,293 5,498 67% 47% 1,276 1,554 1,444 13% -7% Other ASIA 493 262 92 -65% -57% 2 23 86 5061% 280% CHINA 23 1,019 592 -42% 411% 209 72 52 -75% -28% UK 56 178 72 -60% 13% 41 - 30 15 -64% -150% Others 255 499 242 -52% -3% 24 88 58 145% -34% Total 3,388 5,454 6,580 21% 39% 1,595 1,679 1,676 5% 0% 6
Decomposed EBITDA & Debt Profile Non-ICUK (THBmn) ICUK Group (THBmn) Consolidation (THBmn) Representing global Representing global Representing global sponsorship fees sponsorship fees sponsorship fees incurred by Non-ICUK incurred by ICUK incurred by group of companies group of companies consolidation Key indicator of consolidated debt profile Interest bearing debts / Total Equity Total Liabilities / Total Equity Reduced after all capacity expansion projects completed in 2018 7 Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016
Statement of financial position STATEMENT OF FINANCIAL POSITION Unit: THB million Dec-18 Mar-19 Change LIABILITIES Dec-18 Mar-19 Change ASSETS Current Assets Current Liabilities 275 109 Cash, Cash Equivalents 138 379 241 Short-term loans (166) 1,810 1,538 Current Investments - - 0 Trade and other payable (272) Trade and other receivable 907 806 (100) Current portion of long-term loans 401 474 73 Inventories 887 968 81 Other current liabilities 278 369 91 Other current assets 546 533 (13) Total Current Liabilities 2,764 2,490 (274) Total Current Assets 2,477 2,685 208 Long-term loans 1,279 1,261 (18) 2,786 2,786 Debentures 1 Other non-current liabilities 126 138 12 Total non-current liabilities 4,191 4,186 (5) Non-Current Assets Total Liabilities 6,955 6,676 (279) Long-term Investment - - 0 SHAREHOLDERS' EQUITY Investment Properties 100 106 6 Issued and fully paid up share capital 1,000 1,000 0 Property, plant & equipment 11,090 11,018 (72) Premium on shares 3,963 3,963 0 Intangible Assets 77 78 1 Retained earnings 2,240 2,659 419 Deferred Tax Assets 63 56 (7) Other components of shareholders' equity - 26 - 6 1 Other non-current assets 12 12 0 Equity attributable to owners of the Company 7,177 7,616 440 Goodwill 500 507 7 Non-controlling interests of the subsidiary 188 170 (18) Total Non-Current Assets 11,843 11,777 (66) Total shareholders' equity 7,365 7,786 421 Total Assets 14,320 14,463 143 Total liabilities and Equity 14,320 14,463 143 8
Statement of comprehensive income Unit: THB million 2017 2018 Change 2018 1Q2018 1Q2019 Change 1Q2018 1Q2019 YoY %sales YoY %sales %sales (Adj.) (Adj.) Revenue from sales 12,904 14,422 11.8% 100.0% 3,341 3,361 0.6% 100.0% 100.0% Costs of goods sold 8,840 9,813 11.0% 68.0% 2,347 2,171 -7.5% 70.2% 64.6% Gross profits 4,065 4,609 13.4% 32.0% 994 1,189 19.6% 29.8% 35.4% Selling expenses 2,379 2,520 5.9% 17.5% 618 480 -22.3% 18.5% 14.3% G&A expenses 741 788 6.4% 5.5% 195 195 0.0% 5.8% 5.8% Operating profits 945 1,301 37.6% 9.0% 181 514 183.9% 5.4% 15.3% Other incomes 164 135 -17.5% 0.9% 53 30 -43.8% 1.6% 0.9% Other expenses - - - - 9 - - 0.3% EBIT 1,109 1,435 29.4% 10.0% 234 535 128.4% 7.0% 15.9% EBITDA 1,372 1,899 38.4% 13.2% 337 667 97.8% 10.1% 19.9% Interest expenses 48 107 124.0% 0.7% 25 35 41.4% 0.7% 1.0% EBT 1,061 1,329 25.2% 9.2% 210 500 138.6% 6.3% 14.9% Income tax expenses 261 368 41.3% 2.6% 79 101 27.8% 2.4% 3.0% Net profits for the period 801 960 19.9% 6.7% 130 399 205.9% 3.9% 11.9% * Equity Holder of the Company 1,246 1,159 -7.0% 8.0% 181 419 132.4% 5.4% 12.5% Remark : *CBG increased shareholdings in ICUK, a subsidiary operating marketing and distribution of Carabao products in the UK and other countries outside Asia, from 51% to 84% since 1Q18 onwards. 9
CARABAO CUP GLOBAL MEDIA PLATFORM Mass, World-Class Marketing Tool Renew contract for 2 years ended in 2021/2022 30 season (same price) Broadcasters 175 Over Present in 50% over 30 energy drink Territories countries sales from covered overseas 762m 2018/19 season 36% 44% Potential 106% household reach Increase in Increase in Increase in brand brand association awareness positivity with the EFL 10 10
GREEN APPLE 180ml. Launched in Jun ’ 18 Launched in Mar ’ 19 VOL SHARE, can energy drink market, in Apr ’ 19 330 ml. 180 ml. Available only Made available in 20-34 in 7-Eleven all channels (MT, TT, Cash vans) Retail price Target age Retail price THB 25 range of THB 15 (incl. VAT) consumer (incl. VAT) 11 11
Appendix: Corporate Profile World Class Product, World Class Brand 13 13
Company overview Carabao is the 2 nd largest energy drink company in Thailand with strong distribution channel and a successful overseas business, which represents c.51% of the total revenue Business overview Product overview • Founded in 2001 as a partnership between 3 founders one of Categories Product Portfolio which is the leading singer of Carabao (Thai legendary folk band), the Carabao Group is now the 2 nd largest energy drink company in Thailand with 22.8% market share 1 Energy drink • Its main product, Carabao Energy Drink, is packaged into amber glass bottles or aluminum cans. Other branded products include bottled water, coffee, Carabao Sport electrolyte drink and other 3rd party products Coffee • Vertically integrated business model - CBG manufactures and distributes its own products, while excess distribution is maximize 3-in-1 instant coffee RTD coffee drink by distributing 3 rd party products Others • Carabao has strong in-house production capabilities of glass Carabao Sport bottle, and aluminum can (production commenced in late Q4 electrolyte drink 2018) Drinking water Carabao's market share evolution 1 • Strong distribution channel with presence in both traditional and modern channels % of Thailand energy drink market share o Over 50 first tier agents o 31 distribution centers across Thailand o 326 cash vans, covering c.180,000 retailers • Successfully tapped into global markets o Strong presence in international markets including Cambodia, Myanmar, Vietnam, Laos and other countries o Penetrating into new key strategic countries i.e. China o Opportunities in new export markets thanks to the fame of 14 14 Carabao Cup Source: 1. Nielsen energy drink market report, as of March 2019 ("Nielsen Report")
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