DIRECTOR MR. STEFANO CLINI 1 2020 MANAGEMENT TEAM 2 New - PowerPoint PPT Presentation

FINANCIAL PERFORMANCE & OPERATIONAL REVIEW MANAGING DIRECTOR MR. STEFANO CLINI 1

2020 MANAGEMENT TEAM 2

New Leadership Team Members Koh oh P Poi oi San San Pauline Li Pauline Lim Pe Peter ter Wachenschw Wachenschwanz anz Malaysian, 44 Malaysian, 43 German, 35 Legal gal & Complia plianc nce Direct ector r Human uman Resourc sources s Direct ector Supp upply ly Chai ain n Direct ector and nd Comp mpan any y Secr cretary ry Appointed on 25 November Appointed on 7 February 2020 Appointed on 17 February 2020 2019 3

FINANCIAL RESULTS FY’19 4

FY19 vs. FY18 13.8 % REVENUE to RM2.26 bil 5.0 % to RM291.0 mil NET PROFIT 5.0% to 95.18 sen EARNINGS PER SHARE 5

Dividends from FY2013 – FY2019 100.0 100.0 100. 00.0 4.8 9.3 87.0 90. 0.0 23.6 11.0 80. 0.0 22.4 72.0 72.0 71.0 Divid idend end policy: icy: Interim dividends 70 70.0 declared on a quarterly basis, 61.0 with a target payout of at least 17.0 16.6 60. 0.0 75% of the Group’s quarterly consolidated net profit. 50. 0.0 17.0 16.0 66.0 Special Dividend (Single Tier) 40. 0.0 67.0 67.0 66.0 Final Dividend (Single Tier) 56.0 30. 30.0 16.1 Fourth Interim Dividend (Single Tier) 15.7 Third Interim Dividend (Single Tier) 20. 0.0 Second Interim Dividend (Single Tier) 21.5 20.0 10. 0.0 First Interim Dividend (Single Tier) 10.0 5.0 5.0 5.0 5.0 0.0 0. 201 2013 2014 201 2015 201 2016 201 2017 201 201 2018 201 2019 7

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FY19 vs. FY18 7% Growth in CORE BEER CARL RLSB SBERG DANISH H PILSNER • Carlsb lsberg g Smooth oth Draug ught ht continues +5% to drive category growth, closing FY’19 with volumes up 24% in MY and CARL RLSBE BERG 30% in SG vs. FY’18. SMOOTH TH DRAUG UGHT HT +24% • Flagship Carls lsbe berg g Danish nish Pilsne ilsner grew 15% in Q4’19 vs. Q4’18 on the back of positive consumer response to Carlsberg’s new look and practical betterments launched in 2H’19. 9

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FY19 vs. FY18 13% Growth in PREMIUM • 1664 Blanc and Connor’s Stou out t Port rter r maintained strong double-digit growth momentum. • Overall category growth from consu sume mer r prefer erenc ence e + continued investments in promoti motion ons s and d sampli mpling. 14

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FY19 vs. FY18 58% Growth in CRAFT Malays aysia ia +115% Singapor apore +44% • Introduced Brook oklyn yn Summer mmer Ale seasonal variant in Malaysia for the first time • Expanded retail presence on e-comme ommerce e platf atforms orms in MY + premium mium supermark permarkets ets in SG 18

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NAVIGATE THE STORM IN NEW NORMAL & BUSINESS RECOVERY 20

COVID-19: Impact on Revenue & Net Profit Q1 ’ 20 vs. Q1 ’ 19 Q1FY20 revenue down 10.6% to RM589.9 mil; net profit slipped 16.7% to RM73.0 mil MY: Timing ming of CN CNY, Unpr nprecede dented ed level SG: : Sales ales impa pact cted d by Suspen Su spension sion of interim im absen sence of trade ade loading ding CNY Y ti timin ing g and nd of uncert rtaint ainty and d divide idend d paymen ayments in March ch, , and d low ower er volatil atilit ity due ue to COVID-19 19 containm ainment nt for 2020 020 sales les during g MCO me measures s by y govt. t. COVI VID- 19 for 2H’20 21

Covid-19 Leadership Triangle Situational Leadership/People Defend EBIT and Cash Prepare for the Rebound 22

COVID-19 Dec ‘19 – Feb ‘20 Mar ‘20 – Apr ‘20 May ’20 onwards PRE-LOCKDOWN DURING LOCKDOWN GRADUAL RECOVERY • Covid-19 spreads in China and • Global pandemic declared, 1/3 of • MY: Gradual lifting of social distancing crosses international borders human population in lockdown measures but not all on-trade • Singapore and Malaysia report • Movement Control Order (MY) businesses allowed to sell beer first detected cases on 23 and 25 and Circuit Breaker (SG) declared • SG: partial reopening of on-trade Jan respectively outlets only from 19 June • “New normal” changes marketing and social landscapes • Business continuity planning • Production & distribution suspended, • Brewery resumes operations from covering commercial and impacting stock levels and exports start of Conditional MCO in MY (4 operational aspects • Stakeholder engagement: employees, May) • H&S practices tightened business partners, customers • Safer Together: initiatives to help • Safer Schools: CSR initiative for the customers recover community 23

1H2020 Trade Performance ON-TRADE OFF-TRADE E-COMMERCE • Traditional and modern outlets • Off-trade volume increased • e-Commerce volumes saw a badly affected during MCO/CB compared to the same period last significant increase compared to with no dine-in allowed year, driven by home consumption same period last year • Very slow recovery seen in during MCO • Carlsberg is dialling up investments traditional outlets • Supermarkets, hypermarkets and and marketing activity to take • Modern outlets innovated and convenience stores remained open advantage of this upward evolved with more takeaways and and performed well momentum driven by more e- deliveries • Stock availability was impacted commerce users and increased • An estimated 60% of on-trade due to suspension of production adoption outlets currently in operation and distribution, which has since compared to only 20% during resumed MCO/CB 24

SAFER TOGETHER… in support of our customers, consumers and communities we operate in Read more here: carlsbergmalaysia.com.my/covid-19/our-efforts 25

AN EARLY, PRE-MCO CNY 2020 26

A RENEWED DIGITAL FOCUS FOR BRAND ENGAGEMENT DURING MCO 27

A TOAST TO THE LONGEST PARTNERSHIP IN EPL HISTORY 28

2020 OUTLOOK 29

COVID-19 OUTLOOK COVI VID-19 19-related guidelines (i.e. social distancing and mass-gathering limitations) will adversely impact our on-trade business, with very slow recovery anticipated due to reduced capacity. SAIL’22 strategy remains unchanged; committed to agility in implementing revised priorities, especially Fund und the e Jo Journ rney ey cost-control initiatives. Cov ovid id-19 19 Leade adership rship Trian angle gle: situational leadership, defending operating profit and cash, and preparation for market rebound to guide the way we operate in the new normal. 30

Inclusion in MSCI Global Standard Index Other accolades/recognition in FY2019: 1. 1. FTSE4G SE4Good od Bursa sa Malay aysi sia a Inde dex inclusion 2. 2. The Edge ge Billi llion on Ringg ggit it Club ub Best • As of February 2020, Carlsberg Brewery Malaysia Corporate Responsibility Award Bhd received an MSCI ESG Rating of BBB. (under RM10 billion market cap) 3. 3. Putr tra a Brand nd Awar ards ds – Carlsberg & • One of 40 0 constit tituents uents on the index which Somersby measures the performance of the large and mid- 4. 4. Interna rnation tional l Beer r Challe allenge nge & cap segments of the Malaysian market, covering World ld Beer Awar ards ds – Royal Stout about 85% of the Malaysian equity universe. 31

#CELEBRATE RESPONSIBLY Our Consistent Stand Against Irresponsible Drinking 32

THANK YOU 33