Earnings Presentation 28 th May 2018 CONFIDENTIAL AND PROPRIETARY - - PowerPoint PPT Presentation

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Q1 2018 Earnings Presentation

28th May 2018

Confidential

Disclaimer

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The following presentation may contain forward looking statements by the management of Berli Jucker Public Company Limited (“BJC”), relating to financial or other trends for future periods, compared to the results for previous periods. Some of the statements contained in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and

• bjectives. Forward looking information is based on management’s current

views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be constructed as a representation as to future performance

• f BJC. In particular, such targets should not be regarded as a forecast or

projection of future performance of BJC. It should be noted that the actual performance of BJC may vary significantly from such targets.

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Agenda

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▪ Highlights ▪ Overall performance ▪ Financial Performance and Operational Update by

Supply Chain

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Q1 2018 Highlights

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Financial performance

• Delivered a strong first quarter results.
• Strong performance across supply chains.
• New store openings driving sales growth and resilient rental income

performance continued at Modern Retail Supply Chain.

• Solid margin improvements at the Group level and across most of supply

chains.

• Robust net income growth for the quarter.

Operations

• Packaging Supply Chain: Strong aluminum can sales continued; SB4 furnace
• perated in full capacity enabling us to reduce costs and improve margins.
• Consumer Supply Chain: Strong Food and Non-Food performance continued.
• Healthcare and Technical Supply Chain: Softer quarter due to some purchase

delays which are expected to be captured during following quarters of the year.

• Modern Retail Supply Chain: Solid quarter despite slowing down SSSG; Store

expansion progressing on track.

HIGHLIGHTS

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Agenda

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▪ Highlights ▪ Overall performance ▪ Financial Performance and Operational Update by

Supply Chain

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Overall Performance

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OVERALL PERFORMANCE

Sales Net Profit 35,677 37,069

Q1 2017 Q1 2018

965 1,445 965 1,254

Q1 2017 Q1 2018

Net Profit

• Norm. Net Profit

▲49.8% ▲30.0% ▲3.9%

(THB mm) (THB mm)

Q1 2018 sales increased 3.9% YoY driven by good performance of Packaging, Consumer, and Modern Retail supply chains.

Note: One-time item after tax: Gain on disposal of investment in subsidiary amount THB 191 MN in Q1 2018.

Q1 2018 net profit increased 49.8% YoY mainly driven by solid performance of Modern Retail supply chain and the profitability improvements in Packaging, Consumer, and Healthcare and Technical supply chains.

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Q1 2018 vs. Q1 2017 – Supply Chain Performance (Recurring)

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Note: (1) PSC - Packaging Supply Chain (2) CSC - Consumer Supply Chain (3) H&TSC- Health Care and Technical Supply Chain (4) MSC- Modern Retail Supply Chain

• Q1 2018 Sales of THB 37,069 million, an increase of THB 1,392

million or 3.9% YoY

• PSC’s sales improved by THB 614 MN, driven by strong growth in

aluminum can packaging business particularly due to strong sales from the energy drink segment.

• CSC’s sales increased by THB 200 MN. The increase was driven by

strong sales performance in Food and Non-Food segments.

• H&TSC’s sales decreased by THB 142 MN due to the declining sales
• f kidney dialysis related products during the quarter.
• MSC‘s sales increased by THB 1,089 MN driven by same-store-sales

growth of +0.3% and new store openings (11 new hypermarket stores

• pened since Q1 2017).

Sales performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

Q1 2017 Q1 2018 965 965 1,026 1,130 1,131 1,241 1,254 61 104 1 110 13

(THB mm)

Normalized net profit performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

Q1 2017 Q1 2018

• Q1 2018 normalized net profit of THB 1,254 million,

an increase of THB 289 million or 30.0% YoY

• PSC’s net profit increased by THB 61 MN, driven by increased

sales and improved profitability.

• CSC’s net profit increased THB 104 MN. Net profit increase came

from higher sales from food and non-food segments, lower raw material costs, and profitability improvements.

• H&TSC’s net profit increased THB 1 MN, driven by improving

gross profit margin in the medical equipment division.

• MSC’s net profit increased by THB 110 MN, driven by increased

revenue, and stable EBIT margin performance due to cost controls.

(THB mm)

OVERALL PERFORMANCE

35,677 35,677 36,291 36,349 36,349 37,069 37,069 614 200 (142) 1,089 (369)

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Q1 2018 vs. FY 2017 – Performance Breakdown

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Note: (1) PSC - Packaging Supply Chain (2) CSC - Consumer Supply Chain (3) H&TSC- Health Care and Technical Supply Chain (4) MSC- Modern Retail Supply Chain

PSC 13% CSC 11% H & TSC 6% MSC 70% PSC 14% CSC 12% H&TSC 5% MSC 69%

Q1 2018 Performance breakdown Sales Breakdown Sales Breakdown EBITDA Breakdown EBITDA Breakdown FY 2017 Performance breakdown

PSC 24% CSC 7% H&TSC 5% MSC 64% PSC 23% CSC 7% H&TSC 5% MSC 65%

OVERALL PERFORMANCE

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Agenda

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▪ Highlights ▪ Overall performance ▪ Financial Performance and Operational Update by

Supply Chain

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Packaging Supply Chain (PSC) Performance

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618 843 13.1% 15.8% Q1 2017 Q1 2018

EBIT EBIT Margin (THB mm)

EBIT and EBIT Margin

455 516 9.7% 9.7% Q1 2017 Q1 2018

NPAT NPAT Margin (THB mm)

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

4,708 5,322 20.5% 23.7% Q1 2017 Q1 2018

Sales GP Margin (THB mm)

▲ Sales 13.0% ▲ GP% 324 bps

Sales and GP Margin

▲ EBIT 36.4% ▲ EBIT% 271 bps ▲ NPAT 13.4% ▲ NPAT% 3 bps

NPAT and NPAT Margin

• Q1 2018 sales reached THB 5,322 MN, up +13.0% YoY due to strong growth in can packaging business

particularly due to strong sales from the energy drink segment.

• Our gross profit margin increased by +324 bps YoY, reaching 23.7% for the quarter. This increase was mainly

driven by gross profit margin improvement in both, glass and aluminum can, businesses.

• Our EBIT reached THB 843 MN, up +36.4% YoY, and our EBIT margin increased by +271 bps YoY, reaching

15.8% for the quarter.

• Our net profit reached THB 516 MN, up +13.4% YoY, and our net profit margin increased by +3 bps YoY,

reaching 9.7% for the quarter.

Q1 2018 Highlights

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Consumer Supply Chain (CSC) Performance

11 11

193 325 4.6% 7.3% Q1 2017 Q1 2018

EBIT EBIT Margin (THB mm)

EBIT and EBIT Margin

134 238 3.1% 5.4% Q1 2017 Q1 2018

NPAT NPAT Margin (THB mm)

4,243 4,443 18.0% 21.1% Q1 2017 Q1 2018

Sales GP Margin (THB mm)

▲ Sales 4.7% ▲ GP% 307 bps

Sales and GP Margin

▲ EBIT 68.3% ▲ EBIT% 277 bps ▲ NPAT 78.1% ▲ NPAT% 221 bps

NPAT and NPAT Margin

• Q1 2018 sales reached THB 4,443 MN, up +4.7% YoY, mainly driven by strong sales performance in Food, and

Non-Food segments, whilst International Trading segment’s sales declined due to discontinuation of distribution for low margin products in Vietnam and the depreciation of the Vietnamese Dong from previous year.

• Our gross profit margin increased by +307 bps YoY, reaching 21.1% for the quarter. This increase was mainly driven by

higher sales and profitability improvements in food and non-food businesses as well as lower crude palm oil and crude coconut oil prices.

• Our EBIT reached THB 325 MN, up +68.3% YoY, and our EBIT margin increased by +277 bps YoY, reaching 7.3% for the

quarter due to lower SG&A-to-sales ratio.

• Our net profit reached THB 238 MN, up +78.1% YoY, and our net profit margin increased by +221 bps YoY, reaching 5.4%

for the quarter, due to abovementioned reasons. Q1 2018 Highlights

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Consumer Supply Chain (CSC) – Operational Update

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Food

• New products launched during the quarter
• Tasto Potato Chips: better brand penetration and

further drive on brand proposition of “Sense of challenges maker life fun”

• Party Extruded: “Party banana choco” - strong

brand momentum under brand proposition of “Sweet complete everything”

• Successful promotional activities of Party extruded

snacks with strong growth and increasing market share

• Dozo rice cracker: dominated RC market leader with

81% market share in MAT Mar’18

• Kato: market leader in fruit juice with 20% market share

in Eco & Super Eco Fruit Juice Segment.

• New brand presenter: “Jaonaay & Jaosamut” to

uplift brand image with fully marketing support in Q1 2018. FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Consumer Supply Chain (CSC) – Operational Update

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Non-food

• Parrot:

– Re-launched Parrot Liquid with

new brand proposition, “Parrot Natural Filler Hyarulon for soft

&supple skin feel”, with new brand ambassador Khun “Mew”. – Launch new communication of Parrot Herbal with compelling claim “For radiant skin look in 7 days” to continue strong momentum of Parrot Herbal.

• Zilk:

– Re-launch Zilk facial box with new concept, “Value added box graphic co-design with famous fengshui - “Mhor Chang” for lucky fortune in year 2018”. – Launch Zilk smart soft pack with better value offering.

• Other product launches:
• Cellox soft pack twin pack for CVS.

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Healthcare & Technical Supply Chain (H&TSC) Performance

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203 208 10.5% 11.6% Q1 2017 Q1 2018

EBIT EBIT Margin (THB mm)

EBIT and EBIT Margin

164 165 8.5% 9.2% Q1 2017 Q1 2018

NPAT NPAT Margin (THB mm)

1,942 1,800 30.8% 31.1% Q1 2017 Q1 2018

Sales GP Margin (THB mm)

▼ Sales 7.3% ▲ GP% 28 bps

Sales and GP Margin

▲ EBIT 2.4% ▲ EBIT% 110 bps ▲ NPAT 0.5% ▲ NPAT% 71 bps

NPAT and NPAT Margin

• Q1 2018 sales reached THB 1,800 MN, down -7.3% YoY, mainly driven by the declining sales of kidney

dialysis related products during the quarter.

• Our gross profit margin increased by +28 bps YoY, reaching 31.1% for the quarter mainly driven by

improving gross profit margin in the medical equipment division.

• Our EBIT reached THB 208 MN, up +2.4% YoY, and our EBIT margin increased by +110 bps YoY, reaching

11.6% for the quarter due to better gross profit margin in Healthcare Supply Chain.

• Our net profit reached THB 165 MN, increase of +0.5% YoY, and our net profit margin increased by +71 bps

YoY, reaching 9.2% for the quarter, due to abovementioned reasons.

Q1 2018 Highlights

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Modern Retail Supply Chain (MSC) Performance

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1,701 1,770 6.9% 6.9% Q1 2017 Q1 2018

EBIT EBIT Margin (THB mm)

EBIT and EBIT Margin

1,280 1,390 5.2% 5.4% Q1 2017 Q1 2018

NPAT NPAT Margin (THB mm)

24,561 25,650 16.2% 15.9% Q1 2017 Q1 2018

Sales GP Margin (THB mm)

▲ Sales 4.4% ▼ GP% 31 bps

Sales and GP Margin

▲ EBIT 4.0% ▼ EBIT% 3 bps ▲ NPAT 8.6% ▲ NPAT% 21 bps

NPAT and NPAT Margin

• Q1 2018 sales reached THB 25,650 MN, up +4.4% YoY, mainly driven by new store openings as same-

store-sales growth slowed to +0.3% YoY for the quarter.

• Our gross profit margin declined slightly by -31 bps YoY, reaching 15.9%, mainly due to a sales-mixed change as

food contribution increased relative to non-food contribution.

• Our EBIT reached THB 1,770 MN, up +4.0% YoY, and our EBIT margin was relatively flat comparing to last year,

reaching 6.9% for the quarter due to stable SG&A-to-Sales ratio.

• Our net profit reached THB 1,390 MN, up +8.6% YoY, and net profit margin increased by +21 bps YoY, reaching

5.4% for the quarter, driven by increased revenue, and relatively stable margin performance.

Q1 2018 Highlights

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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MSC – SSSG and Margin trend

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Big C’s total sale like-for-like performance, recurring gross profit margin, percentage

Rebasing Same-Store Sales Growth (SSSG) and improving margins due to strategic change

• 2.9%
• 4.0%
• 22.6%
• 22.3%
• 20.0%
• 15.2%

9.2% 3.8% 0.3% 13.2% 14.4% 17.8% 14.1% 16.1% 15.6% 17.7% 17.3% 15.9%

• 50.0%
• 40.0%
• 30.0%
• 20.0%
• 10.0%

0.0% 10.0% 20.0%

• 29.0%
• 19.0%
• 9.0%

1.0% 11.0% 21.0% 31.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016¹ Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

1 Q4 2016 Excluding one-off items: GP -74 million baht.

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

SSSG growth remained at the positive territory during Q1 2018 amid deflationary impact in key commodities and calendar impact, whilst GP margin declined slightly due to sales mix changes.

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MSC – Expansion update

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Retail and Rental Area Q1 2018¹

Total space:

• c. 1,151,000 sq.m.

Total space: c.898,000 sq.m.

Expansion

• 8 Hypermarket stores
• c.200 Mini Big C in combination of owned

stores and franchise stores. Renovations

• 6

Extension renovations, 4 Right-sizing renovations, and 3 Full Renovations.

Targets for 2018

Q1 2018 Progress

• Strong rental income growth continued

during the quarter, increasing 5.6% year-on- year.

• Occupancy reached 95.7% for Q1 2018,

stable year-on-year.

• Opened 2 hypermarket, 24 Mini Big C (all
• wn stores), and 1 Pure drugstore.
• Completed 2 extension renovations at

Nakornpathom (rental space increased form 10,000sqm to 15,000sqm) and Sukothai 2 (rental space increased from 2,700 sqm to 7,000sqm) and 1 full-renovation at Had Yai during the Q1 2018.

1 Including Hypermarket, Big C Market, Mini Big C (excluding Franchise stores), and Pure Drugstores

2,596 2,742 Q1 2017 Q1 2018

5.6% Rental Income

(THB Million)

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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MSC – Format Development

OPERATIONS UPDATE

• Mini Big C
• Introduced new Mini Big C store design with upscale

look, matching with downtown location.

• First store opened at Big C Rajdamri
• Outstanding offer of ready-to-eat products in order to

serve office workers, tourists, and passing foot traffic

• Utilize

strengths

• f

Rajdamri Hypermarket in

• ffering customers with fresh cooked meals and

freshly baked products.

• Synergize with products from the Group, such as;

soft serve machine, slush machine, est post mix.

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• Expansion in Cambodia
• Secured a land plot from Poipet, Cambodia, for a

Hypermarket:

• 3K Hypermarket
• Retail area: c.2.7K sq.m.
• Rental area: c. 3.1K sq.m.
• 30-year leasehold
• Scheduled to open in Mid-2019

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MSC – B2B Sales update

OPERATIONS UPDATE

• Business-to-Business sales.
• The total number of registered B2B customers has grown

to over 12,500 customers at the end of March 2018, from 7,600 customers at the end of December 2017.

• We have

increased the number of stores serving HoReCa customers from 30 stores to 61 stores at the end of March 2018, with capacity and capability to sell Fresh Food in bulk.

• Over 7,500 registred HoReCa customers at

the end of March 2018.

• Preorder and pick-up from store, or have their
• rders delivered within 3km – 5km radius.
• Implementing Marketing activities campaign

& CRM development to grow active customer.

• We have rolled out further “Cash Vans” and had 15

cars operating from 7 upcountry stores at the end of March 2018.

• Cash Vans offer a limited range of best selling

products to up country customers from our fleet of pickup trucks.

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Confidential

MSC – Private Label Update

OPERATIONS UPDATE

• Growing private label penetration

– Private label penetration has grown to 8.7% at the end of March 2018, up from 7.9% at the end of March 2017. – The growth has been driven by: – Successful launch of Besico private label during 2017. – 1,235 Besico SKUs at the end of March 2018 – Soft line development – Thai Costumes, New collection of Cove and Emily Basics, and Lingerie's Collection – Successful private label promotions in Dry Food – Additional Fresh Food SKUs in frozen meal under Big Meal – At the end of March 2018 we had nearly 3,000 private label SKUs excluding soft line private labels. (Total of c. 16,700 PL SKUs) – We have additional display for in Dry food division, focus on key items value, starting from April 2018.

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Community focus update

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• Education support

– The Foundation donated money to support the “Library for Kids” Project of ASIA BOOKS for the purpose of encouraging reading and reading activities for students in underprivileged schools – The company supported and donated learning equipment, books, Braille code keyboards and money to support schools and communities to promote and strengthen education in communities.

• Social support

– The Foundation donated money and products to support the League of Foundation of Thailand under Royal Patronage of H.M.the King, Friend in Need (of “PA”) Volunteers Foundation, Thai with Disability Foundation,

• rganizations, and communities.

– Big C Stores cooperated with government units within their areas to organize activities, such as supplying learning equipment or consumer products in

• rder to help communities in need and enhance relations.
• Buddhism/Cultural Support

– The Foundation donated money to Somdet Phra Nyanasamvara Somdet Phra Sangharaj Wat Bovoranives Vihara Foundation under Royal Patronage to support monk education. – Big C provided drinking water and stuff for women who joined the ceremony at Phothong Temple, Bangkok, presided over by Royal Highness Princess Somsawali. – Big C Stores supported money for Buddhism and cultural events in order to enhance relations within communities and government units.

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Conclusion

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…solid margin improvements in Packaging, Consumer, and Healthcare & Technical Supply Chains. …and continued resilient performance of Modern Retail Supply Chain, led to a robust Net Profit growth Operational initiatives and store expansion progressing on schedule with first hypermarkets and renovations completed in first quarter of the year. Strong performance for the quarter, driven by…

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Q&A

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Berli Jucker Public Company Limited Berli Jucker House 99 Soi Rubia, Sukhumvit 42 Road, Phrakanong, Klongtoey, Bangkok 10110, THAILAND Website: www.bjc.co.th IR contacts Investor Relations Department E-mail: IR@bjc.co.th Website: www.bjc.co.th/en/investor-relations/investor-relations.php

• 1. Rami

Piirainen Ramip@bjc.co.th +66 2 367 1047

• 2. Tanaporn Teachaviwat

Tanaport@bjc.co.th +66 2 367 1189 For more information

Thank You