Company Strategy 2019 11 March 2019 AGENDA 1. Financial - - PowerPoint PPT Presentation

Performance 2018 & Company Strategy 2019

11 March 2019

AGENDA

• 1. Financial Performance 2018
• 2. International Market
• 3. Company Direction 2019
• 4. Domestic Market Transformation
• Danone Sappe Beverages Co., Ltd.

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• 1. Financial Performance 2018

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Revenue Breakdown

1,044.4 958.3 978.7 903.8 958.3 978.7 903.8 903.8 1,538.5 1,754.2 1,708.7 1,923.0 1,538.8 1,708.7 1,923.0 1,923.0 68.2

5.0%

• 0.9%

5.2% 7.6% 5.2% 7.7%

• 20.0%
• 15.0%
• 10.0%
• 5.0%

• 500.0

1,000.0 1,500.0 2,000.0 2,500.0 3,000.0 2015 2016 2017 2018 2016 (Deconsol.) 2017 2018 2018 (FX Adjusted)

Domestic Sale Export Sale

• Adj. FX

% Growth

2,582.9

2,712.5

2,687.3

2,826.9

2,497.1

2,687.3

2,826.9

2,895.1 (THB mm)

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Net Profit Margin

(THB mm)

Cost of Goods Sold by Quarters

% COGS

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Without FX impact %COGS would be at 62.2%, %COGS rose from FX by 1.5% %COGS rose from PET Resin by 1.04 %

Selling Expenses

(THB mm)

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Admin Expenses

(THB mm)

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Our Portfolio

• “Coconut Juicy Pudding”

nam hom frozen pudding mixed with young coconut flesh

Production Categories Description Key Brands Sale Structure 2018 Total Sales : THB 2,826.9 MB

Healthier Snack

• Beauti Jelly in pouch
• “Zea MaX” the real fish

snack 90% from real fish

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Geographical Overview

“We derive our sale from more than 91 countries around the world”

Sale structure by geography

Asia

2018 Total Sales : THB 2,826.9 MB

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All Coco 2018 Outlook

In 2018 average coconut price was decreased -25% YoY

1%

2018 2017 %YoY INCOME Revenue from sales of goods 347,131,910 344,276,015 1% Other incomes 957,879 4,382,671

• 78%

TOTAL INCOME 348,089,789 348,658,686 0% EXPENSES Costs of sales 290,030,330 275,554,896 5% Selling expenses 29,332,251 28,495,900 3% Administrative expenses 23,167,425 32,702,817

• 29%

TOTAL EXPENSES 346,156,361 343,191,222 1% Profit (loss) before income tax expense 1,933,427 5,467,463

• 65%

Tax expenses 1,727,938 2,643,358

• 35%

Profit (loss) for the year 205,489 2,824,105

• 93%

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Industrial Sales Volume

Tons

Sales by BUs

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• 2. International Business

Top Line Growth by Regions

America & EU

+10%

Asia

+15%

ME & Other

• 2%

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Thailand

• 3%

International Business Strategy

 2018 Sales value growth by +10% YoY  (+14% YoY FX adjusted)

2019 GROWTH TARGET by +10% YoY

 CAGR growth by +10% (2013-2018)

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• 3. Company Direction 2019

เติบโตด้วยนวัตกรรม ท ำด้วยควำมสุข

Innovate to GROW, Innovate to WIN.

O u r p u r p o s e . W H Y w e d o w h a t w e d o …

Company Direction 2019

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Preaw All Day Slimming Coffee Mocha & Chafe Beauti Acna Maxtive Zeamax Original, Tomyum, Spicy Mix Mogu Macaron, Black Currant, Soursop, Grapefruit Beauti Jelly Collagen, Fiber, Camomile Aloe Vera Melon & Strawberry Gumi Macaron Shootz

In House 2018 NPDs Launched

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Tracks of Innothink

Merge and Acquisition (M&A)

In House Inno Studio

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In House

• No. of NPD PIPELINE 2019

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Collaboration

NPDs Launched 2019

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Inno Studio

100% Real Shrimp It is Healthier snack High natural Calcium and nutrients New Snacking Experience Deliciously can't stop!

THAI AI LOCAL AL GOODNE DNESS SS

Me MeVative

มีเวทีฟ

Source from small Community Enterprise

GLOBAL GAP STANDARD

The Worldwide Standard for Good Agricultural Practices

SPECIFIC PLANTING

(GEOGRAPHICAL INDICATION, GI) 23

Awards

Selection China Finalist China Selection Paris รางวัลแห่งความภาคภูมิใจของพวกเราชาวเซ็ปเป ้

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• 4. Domestic Business

Transformation

Overall Beverage Market

2018 HIGHLIGHT

 Sales value growth by +3%, while beverage mkt flat Total Thailand - 2018 Total Thailand - 2018

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2018 HIGHLIGHT

 Sales value growth by +3%, while beverage mkt flat

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Danone Brands Portfolio

Waters Early Life Nutrition Advanced Medical Nutrition Essential Dairy and Plant-Based Products

THAILAND

Shareholding proportion

sappe is a co-packer and a distributor, in charge of manufacturing and distributing of joint venture company products

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Collaboration

THAILAND

Co development of new products to better serve local & international markets through strong global consumer insights analysis, R&D and marketing strategies.

Co-development THAI Migrate Danone's existing products to Thai market

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The Landing of

China 2003 Philippines 2015 Indonesia 2005 Hongkong 2016 Thailand 2019

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How does B’LUE Thailand look like?

Cap Type

• Wide bottle neck for large refreshing

gulps full of flavour

Bottle

• Iconic and premium bottle shape

with ergonomic grip

• Transparent bottle

Label Communications

• Transformer symbol to express the

fusion of water and fruit

• Vitamin Icon to highlight functionality
• Healthier Choice Logo

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More than 90% of consumer intent to buy at 25 THB

Refreshes your Body and mind to get ready and get fueled with positive power.

POSITIVE PEAR

Makes you realize that life has more to

• ffer. So go on, and enjoy life because

isn’t that what it’s all about?

PLAYFUL PEACH

Refreshes you right away and you feel alert of possibilities in life, it gives you coolness.

COOL CALAMANSI

Single bottle (24x500ml) Net Content: 500 ml.

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#Everyday #AllDay #MoreThanWater

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Q&A

Innovative Spirit

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