Analyst Meeting FY19 Financial Performance
27 February 2020
Osotspa Public Company Limited (OSP)
FY19 Financial Performance 27 February 2020 Disclaimer Statements - - PowerPoint PPT Presentation
Osotspa Public Company Limited (OSP) Analyst Meeting FY19 Financial Performance 27 February 2020 Disclaimer Statements included or incorporated in these materials that use the word believes, anticipate, estimate, target,
27 February 2020
Osotspa Public Company Limited (OSP)
Statements included or incorporated in these materials that use the word “believes”, “anticipate”, “estimate”, “target”, or “hope”, or that otherwise relate to the objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are “forward-looking statements” within the meaning that are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Osotspa Public Company Limited (“OSP” or the “Company”) undertakes no obligation to publicly update or revise any forward-looking statement, whether as result of new information, future events or otherwise. OSP makes no representation and assume no liabilities against whatsoever about the opinion or statements of any analyst or other third party. OSP does not monitor or control the content to third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement. The information contained herein has been obtained from sources that the Company considers reliable, but the Company does not represent or warrant that the information is complete or accurate, in particular with respect to data provided by or regarding third parties. The information in the presentation does not purpose to be comprehensive or to contain all the information that a prospective investor may desire or require to decide whether or not to purchase securities of the Company. The information in the presentation might be incomplete or summarized and has not been independently verified and will not be updated. Such information may in the future be subject to audit, limited review or any other control by an auditor or independent party. Therefore, the information included in the presentation may be modified or amended in the future. The information in this presentation, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future
statements, contained in this [presentation[. This presentation includes forward-looking representations or statements on purposes, expectations or forecasts of the Company or its management up to the date of release of this document. Said forward-looking representations and statements or forecasts are mere value judgments of the Company and do not imply undertakings of future performance. Additionally, they are subject to risks, uncertainties and other factors, which were unknown or not taken into account by the time this document was produced and released and which may cause such actual results, performance or achievements, to be materially different from those expressed or implied by these forward-looking statements. Moreover, these forward-looking statements are based on numerous assumptions (which are not stated in the presentation) regarding the Company’s present and future business strategies and the environment in which the Company expects to operate in the future. There are many factors, most of them out
looking statements due to the inherent uncertainty therein. Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed may be due to
not based upon a consideration of your particular investment objectives, financial situation or needs. You may wish to seek independent and professional advice and conduct your own independent research and analysis of the information contained in the presentation and of the business, operations, financial condition, prospects, status and affairs of the Company. This presentation discloses neither the risks nor other material issues regarding an investment in the securities of the Company. The information included in this presentation is subject to, and should be read together with, all publicly available information. Any person acquiring securities of the Company shall do so on their own risk and judgement over the merits and suitability of the securities of the Company, after having received professional advice or of any other kind that may be needed or appropriate but not only on the grounds of this presentation. By delivering this presentation, the Company is not providing any advisory, purchase or sale recommendation, or any other instrument of negotiation over the securities or financial instruments of the Company. This presentation does not constitute or form part of, and should not be construed as, any offer, inducement, invitation, solicitation or commitment to purchase, subscribe to, provide or sell any securities, services or products or to provide any recommendations for financial, securities, investment or other advice or to take any decision. This presentation is not and shall not constitute an offer for the sale of securities in Thailand or any jurisdictions. By attending to or receiving this presentation you agree to be bound by the foregoing restrictions and limitations and acknowledge that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation.
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Full Year Target Remark : * Net Profit attributable to owners of the parent ** Net Profit attributable to owners of the parent to Total Revenue from Sales
Net Profit Margin** Net Profit*
from strong brand preposition and sales execution
+ 11.0% Continued strong growth after repositioning in 2H’17
High base CKD last year
+ 35.9% Maintained no. 1 in functional drinks with capacity debottlenecking in Q2’19
With Peptein Plus in Feb’19
+ 15.2 % Mainly driven by NPD Sweet Almond launched in May’19
Continue momentum of cool powder and NPD whitening plus roll on
High internal demand of glass together with lower sales on OEM – personal care
+ 10.3% Driven by growth from Ole
Mainly driven by Myanmar (-2.1% at constant FX)
+3.5% Driven by Middle East
12.4% vs. 12.5% in Q4’18
improved by 50 bps YoY from “Fit Fast Firm” project driving overall costs down
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from strong brand preposition and sales execution
+ 29.3% Continued strong growth after repositioning in 2H’17
+ 8.7% Mainly from CKD
+ 46.1% Maintained no. 1 in functional drinks with capacity debottlenecking in Q2’19
+ 14.0% With Peptein Plus in Feb’19
+ 8.3 % Mainly driven by NPD Sweet Almond launched in May’19
+ 13.1% Continue momentum of cool powder and NPD whitening plus roll on
Growth in OEM – Glass
+ 11.0% Driven by growth from both Ole and Botan
Net Profit*
Net Profit Margin**
12.7% vs. 12.4% in FY’18
(13.1% if excluding additional provision for retirement benefits 96.8 MB)
improved by 250 bps YoY from “Fit Fast Firm” project driving overall costs down
+ 6.4% Mainly driven by Myanmar (+4.1% at constant FX)
+11.1% Driven by Middle East
Remark : * Net Profit attributable to owners of the parent ** Net Profit attributable to owners of the parent to Total Revenue from Sales
34.5% 35.0% 32.4% 34.9% Q4'18 Q4'19 FY'18 FY'19
24,971 26,187
FY'18 FY'19 14.3% 15.1% 14.4% 15.2% 6.8% 6.8% 6.0% 7.0% Q4'18 Q4'19 FY'18 FY'19
789 823 3,005 3,259 12.5% 12.4% 12.4% 12.7%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Q4'18 Q4'19 FY'18 FY'19
To the owner of the parents
Revenues Gross Margin SG&A Net Profit
Admin Exp Selling Exp ⚫ Net Profit Margin
6,519 6,748
Q4'18 Q4'19 ⚫ Other Income (21.1%) (21.9%)
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(20.4%) (22.2%)
8 Key Changes in Balance Sheet Items
: THB 1,667mn decrease in cash and cash equivalents : THB 1,243mn decrease in private funds : THB 563mn increase in trade accounts receivable from higher sales : THB 3,097mn increase in PPE and investment in SGA2, Talcum plant, Thilawa, AOC, BCB, new beverage filling lines and Glass factory in Myanmar
provisions for employee benefits
equity while retained earnings increased THB 78 million as profit for the period offsetting with the dividend FY2018 and interim 2019 paid to OSP shareholders with the total amount of THB 3,124 million
Cash Flow Movement Operating CF: THB 3,652mn cash inflow from 1) THB 3,268mn Net profit 2) THB 1,537mn Non-cash transactions (depreciation and provision) 3) THB -268mn change in working capital 4) THB -885mn tax paid Investing CF: THB 2,052mn cash outflow from 1) THB 3,498mn PPE acquisition 2) THB -1,234mn Decrease in investment in private fund Financing CF: THB 3,267mn cash outflow from 1) THB -3,124mn Total dividend payment
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Cash Flow (as at 31 Dec 2019) Key Financial Ratios
Notes: ROE and ROA are annualized
Units: THB million
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Nonetheless, the consideration of a dividend payout shall depend on the Company’s performance, financial position, cash flow, contractual obligations (i.e. loan payments), working capital, investment plans, general economic situation, and related factors as deemed appropriate by the Board of Directors and when in compliance with the laws & regulations.
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efficiencies through “Fit Fast Firm” (775MB Cost Savings FY2019)
Whitening Plus Roll-On, Insta Underarm Mask
Mini Sugar Free, and Olé Boom
/ No Sugar
Energy Drinks Functional Drinks Strategic Moves Personal Care and Others
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Company Target Double-digit growth both top and bottom lines
Energy Drinks
➢ Drive brand and market growth through product innovation and premiumization ➢ Strengthen consumer loyalty ➢ Get Som In-Sum and Chalarm into a billion baht brands club
Functional Drinks
➢ Grow C-Vitt with excellent execution and distribution expansion ➢ Strengthen leadership with new formats and new benefits
Strengthen Domestic Beverage Build Personal Care
➢ Strengthen Babimild no. 1 position for mother and baby category through innovations and strong brand equity ➢ Complete manufacturing facility in Myanmar ➢ Grow Myanmar ➢ Accelerate market position in ASEAN ➢ Seeding/Implementing new business in selective countries
Drive International Beverage Seize New Growth Engine
➢ Build industry vending machine business ➢ Build glass factory in Myanmar ➢ Continue building recent launches
Profitability Improvement Continue margin improvement
➢ Continue “Fit Fast Firm” projects in 2019 (formulation, packaging harmonization, raw material cost saving, lighter weight bottles) ➢ Maximize utilization efficiency through Total Productive Maintenance ➢ Drive cost leverage ➢ Digitalize business processes, including supply chain management, procurement system, data analytics and others ➢ Drive process improvement Additional capacity of 10 – 15% in 2H20
Growth drivers
➢ Extend Twelve Plus with its strong perfume equity into new categories via new benefits and exciting formats
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Revenue Growth
International Business
New Business
Fit Fast Firm
Innovation
Digitalization
Double eCommerce Supply Chain Planning Procurement Customer Platform
Total Company Strengthen Myanmar and Enter Vietnam Grow New Businesses Build Innovation Pipeline Improve Efficiency Embrace and Prepare for Digital Era
16 Sep 2017 – Dec 2018 Oct 2019 – Dec 2019 Oct 2021 – Sep 2023 18 14 10 8 6 18+ Sugar Content
(g/100ml)
1 Baht 0.5 Baht 0.3 Baht 0.1 Baht 0 Baht Oct 2023
5 Baht
3 Baht 1 Baht 0.3 Baht 0.1 Baht 0 Baht 5 Baht 3 Baht 1 Baht 0.3 Baht 0 Baht 0 Baht 5 Baht 3 Baht 1 Baht Dec 2018 – Sep 2019 1 Baht 0.5 Baht 0.3 Baht 0.1 Baht 0 Baht Jan 2020 – Sep 2021
5 Baht
3 Baht 1 Baht 0.3 Baht 0.1 Baht 0 Baht
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Rationale Investment ▪ Invest THB 270 million to acquire the remaining 60% share from Asahi Group (“ASHSEA”) Share Acquisition
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Before After
40% 60% 100% Model after Acquisition OSP Licensee of Calpis Asahi Technical and branding support ▪ Additional Beverage capacity to OSP group ▪ Fully utilized the capacity, contributing to better Calpis gross margin ▪ Opportunity to build Calpis brand as part of our functional drink portfolio
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Babi Mild Cream Anti-Pollution
Osotspa has stayed in prompt to handle current situation of PM2.5 pollution and COVID-19 outbreak.
Peptein Gold Ole Hand Sanitizer
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Osotspa has stayed in prompt to enhance the health and wellness of People
Peptein Gold C-Vitt Herbal Segment Slimma, VPlus Peptein
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Babi Mild: Bioganik New Botan New Olé Krisnaklan Tra Kilane
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Investor Relations Email: ir@osotspa.com Tel: 02-351-1152 Website: www.osotspa.com