Malee Group Public Company Limited Q1/2017 Opportunity Day 16 May 2017
Malee Group Public Company Limited Q1/2017 Opportunity Day 16 May 2017
Disclaimers The information contained herein is intended to represent the Company’s operating and financial position at a given point in time and may also contain forward looking information which only reflects expectations based on the prevailing geo-political, economic and non-controllable factors. Such information has been obtained from sources believed to be most reliable and the means in analyzing and preparation of such information for disclosure are based on approve practices and principles in the investment industry. The views are based on assumption subject to various risks and uncertainties and no assurance is made as to whether such future events will occur. No assurance is made as to the accuracy or completeness of information presented in this document. 2
Agenda • Company Overview • Business Update • Results of Operations and Profitability • Forward Looking 3
Group Structure Group Structure A leading manufacturer and distributor of Malee Group Pcl. canned fruits, fruit juices, and beverages in “Manufacturing and Exporting” Thailand 100% 100% 100% 49% 49% 100% Malee Enterprise Monde Malee Beverage Malee Applied Sciences Agri Sol Co., Ltd. Malee Harvest Co., Ltd. Mega Malee Co., Ltd. Co., Ltd. (MEC) Corp. (MMBC) Co., Ltd. (MAS) (AGR) (MHC) (MMC) “Domestic Sale and “ Beverage Business in “ Innovation Research & “Agro Business” “Natural Health Drinks” “Dormant” Marketing” Philippines ” Development” Subsidiary Joint Venture Shareholding Structure (As of 9 May 2017) Share Information (As of 12 May 2017) Stock Symbol: MALEE Industry and Sector : Agro & Food Industry / Food and Beverage Abico No. of Listed Shares: 140,000,000 Shares* Holdings Registered Capital: THB 140,000,000 Pcl Paid-up Capital: THB 140,000,000 26.8% Par Value: THB 1 per Share* Others Listing Date : 13 March 1992 49.3% Foreign Limit: 49% (available 40%) Dividend Policy: Not less than 50% of the net profit from Kamolchat normal operation according to Jeungrung- consolidated financial statement after reungkit deduction of tax revenue and legal reserve 19.2% Thai NVDR (with additional conditions) 4.6% Market Capitalization: 14,350MB or 413MUSD Free Float: 47.77% * A new par value of THB 0.5 per share is effective on 16 May 2017, resulting in 280 million listed shares. 4
Milestones On 2 February 1978, Malee Sampran Factory On 12 January 2017, the Company set up a new Co., Ltd. was established with capital of 10MB subsidiary named Malee Applied Sciences Co., Ltd. as a manufacturer and distributor of canned (MAS) to provide innovation research and food and canned fruits. development for value added products and services. In April 1995, Abico Holdings Pcl acquired On 15 March 2017, MMBC launched its second product, the jelly drink, under the brand of “Jelly Vit .” 40% from the existing shareholders. On 3 March 1992, MALEE was listed on the Stock Exchange of Thailand (SET). 2017 1992 1995 1978 2016 1981 The Company expanded its production In Q1/2016, MALEE, together with Monde Nissin 1998 base on the land of 30 rais in Sampran Corporation (MNC) set up a joint venture company District, Nakhon Pathom Province. in the Philippines named Monde Malee Beverage Corporation (MMBC) and launched KRATOS RTD Coffee as the first product. On 15 May 1998, the Company’s name was changed to Malee Sampran Pcl. On 12 May 2016, the Company’s name was changed to Malee Group Pcl. On 22 August 2016, the Company signed a joint venture agreement with Mega Lifesciences Pcl to develop natural health-focused RTD products. 5
Historical Performance • Prior to 2009, major contribution of CMG was from canned fruits. • Discontinued the canned pineapple 2012-2013: Benefit 2016: Historical production in 2009 and canned sweet corn from the great flood Highest Sales in 2013. 7,000 6,000 Unit: Baht Million 2,062 5,000 CMG Brand Net Profit 3,578 869 2,567 4,000 2,065 1,603 1,737 3,000 1,510 2,405 2,021 898 3M/2017 1,546 2,964 2,822 2,000 2,706 2,615 2,357 2,140 827 1,931 1,682 1,537 1,600 646 1,000 530 688 331 307 228 283 131 106 118 (93) (295) 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3M/2017 CMG: Contract Manufacturing -1,000 6
Malee Brand Portfolio Daily Nutrition Malee Malee 100% Malee 100% Malee Malee Juice UHT Coco Nutrients i-Corn Juice Pasteurize Functionality Tactical Malee Malee Malee Malee Food Malee Malee Probiotics Light Healti Service Tropical Canned Plus Fruit Canned Fruit First Choice Farmer OTHERS Dairy Product Chokchai Farm Canned Sweetened UHT Pasteurize Condensed Non Dairy Creamer Other Beverages TurBusta Maxx 7
Agenda • Company Overview • Business Update • Results of Operations and Profitability • Forward Looking 8
Domestic RTD Fruit Juice Market MAT Mar 2017 Market Value of 13,903 MB, a Decrease of 0.3% YoY Others 2,018MB 15% (-13% YoY) Premium Market (100% RTD Fruit Juice) 5,245MB 38% Super Economy (+7% YoY) Market (<20% RTD Fruit Juice) 2,399MB 17% (+9% YoY) Economy Market (20- Medium Market (40- 39% RTD Fruit Juice) 99%% RTD Fruit 2,976MB Juice) 21% 1,265MB (-10% YoY) 9% (+3% YoY) Source: Neilson 9
Premium Juice UHT Market Share MAT Mar 2017 Market Value of 4,872 MB, Growth of 10% YoY Others 8% Others Cocomax 9% Cocomax Tipco 6% Tipco 9% 28% 32% Doikham 18% Doikham 22% Malee Unif 20% Malee 14% 22% Unif 12% MAT Mar 2016 MAT Mar 2017 Note: Including Coconut Water Source: Neilson 10
Sales Structure Domestic : International Business Brand : Contract Manufacturing 22% 28% 34% 39% 43% 43% 48% 53% 55% 55% CMG Export Brand Domestic 78% 72% 66% 61% 57% 57% 52% 47% 45% 45% 2014 2015 2016 3M/16 3M/17 2014 2015 2016 3M/16 3M/17 CMG: Contract Manufacturing Q1/2017 Domestic sales growth was -13% YoY. Q1/2017 Brand sales growth was -4% YoY. Q1/2017 Export sales growth was +22% YoY. Q1/2017 CMG sales growth was +1% YoY. 11
Domestic Business: New Product New Products NEW MALEE COCO TASTY, FRESH, AND NATURAL 12
MMBC – New Product Launch Jelly Vit, the jelly drink was launched in the mid of March 2017, the second product after Kratos RTD Coffee. Market Position: Pretty Happy Drink Target: Adult Young Girls/ First Jobbers 13
Agenda • Company Overview • Business Update • Results of Operations and Profitability • Forward Looking 14
Financial Highlights Sales Revenue Q1/2017 Sales slightly decreased by 1% YoY due to Unit: Million Baht -1% the slowdown of domestic sales, especially from YoY 6,541 canned fruit. 7,000 5,389 6,000 4,771 However, export sales continued to perform 5,000 outstandingly, both in Brand and CMG Business. 4,000 3,000 1,533 1,515 2,000 1,000 0 2014 2015 2016 Q1/16 Q1/17 Q1/2017 Net profit increased by 8% YoY, in Net Profit accordance with the Company’s strategy and internal management for efficiency enhancement and cost Unit: Million Baht +8% reduction. YoY 530 600 Net profit included loss of 7MB from MMBC and profit 500 331 of 7MB from the disposal of investment in LCF, which 400 307 is the reversal of impairment of goodwill in LCF in 300 Q4/2016. 118 110 200 100 MBCC loss was foreseen and going consistent with 0 the Company’s plan, while the loss was considered as 2014 2015 2016 Q1/16 Q1/17 a normal level for the business at the beginning stage launching new products into the market which requires high spending. 15
Profitability Margin %Gross Profit Margin Improved Q1/2017 GPM YoY was due to enhanced production 50.0% 45.0% 33.7% 32.2% 31.4% 31.3% efficiency and different product mix. 40.0% 30.1% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2014 2015 2016 Q1/16 Q1/17 %Selling Expenses /Sales Improved Q1/2017 selling expenses to sales was supported by the group’s 18.6% 17.4% cost control policy and increased 14.4% 14.6% 20.0% 13.4% 18.0% 16.0% sales ratio of CMG. 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2014 2015 2016 Q1/16 Q1/17 %Net Profit Margin Improved Q1/2017 NPM YoY was due to efficiency enhancement and cost reduction. 8.1% 7.7% 7.1% 9.0% 6.4% 6.1% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2014 2015 2016 Q1/16 Q1/17 16
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