Malee Group Public Company Limited Q1/2017 Opportunity Day 16 May - - PowerPoint PPT Presentation

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

2

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.

Agenda

3

• Company Overview
• Business Update
• Results of Operations and Profitability
• Forward Looking

100%

49%

49%

100%

Stock Symbol: MALEE Industry and Sector: Agro & Food Industry / Food and Beverage

• No. of Listed Shares:

140,000,000 Shares* Registered Capital: THB 140,000,000 Paid-up Capital: THB 140,000,000 Par Value: THB 1 per Share* Listing Date: 13 March 1992 Foreign Limit: 49% (available 40%) Dividend Policy: Not less than 50% of the net profit from normal

• peration

according to consolidated financial statement after deduction of tax revenue and legal reserve (with additional conditions) 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.

Group Structure

4

Group Structure

Malee Group Pcl.

“Manufacturing and Exporting”

Malee Enterprise Co., Ltd. (MEC)

“Domestic Sale and Marketing”

Share Information (As of 12 May 2017)

Abico Holdings Pcl 26.8% Kamolchat Jeungrung- reungkit 19.2% Thai NVDR 4.6% Others 49.3%

A leading manufacturer and distributor of canned fruits, fruit juices, and beverages in Thailand

100%

Shareholding Structure (As of 9 May 2017)

Agri Sol Co., Ltd. (AGR)

“Dormant”

Malee Harvest Co., Ltd. (MHC)

“Agro Business”

Monde Malee Beverage

• Corp. (MMBC)

“Beverage Business in Philippines”

Mega Malee Co., Ltd. (MMC)

“Natural Health Drinks”

Joint Venture Subsidiary Malee Applied Sciences Co., Ltd. (MAS)

“Innovation Research &

Development”

100%

Milestones

5

1978 1981 1992 1995 2016

On 2 February 1978, Malee Sampran Factory Co., Ltd. was established with capital of 10MB as a manufacturer and distributor of canned food and canned fruits. On 3 March 1992, MALEE was listed on the Stock Exchange of Thailand (SET).

1998

The Company expanded its production base on the land of 30 rais in Sampran District, Nakhon Pathom Province. In April 1995, Abico Holdings Pcl acquired 40% from the existing shareholders.

2017

On 12 January 2017, the Company set up a new subsidiary named Malee Applied Sciences Co., Ltd. (MAS) to provide innovation research and development for value added products and services. On 12 May 2016, the Company’s name was changed to Malee Group Pcl. In Q1/2016, MALEE, together with Monde Nissin Corporation (MNC) set up a joint venture company in the Philippines named Monde Malee Beverage Corporation (MMBC) and launched KRATOS RTD Coffee as the first product. On 22 August 2016, the Company signed a joint venture agreement with Mega Lifesciences Pcl to develop natural health-focused RTD products. On 15 March 2017, MMBC launched its second product, the jelly drink, under the brand of “Jelly Vit.” On 15 May 1998, the Company’s name was changed to Malee Sampran Pcl.

1,600 1,682 1,537 1,931 2,140 2,357 2,615 2,706 2,822 2,964 688 2,405 2,021 1,546 898 1,510 1,737 1,603 2,065 2,567 3,578 827 2,062 869 (93) (295) 131 106 228 646 283 307 331 530 118

• 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3M/2017

Unit: Baht Million

CMG Brand Net Profit

3M/2017

Historical Performance

6

CMG: Contract Manufacturing

• Prior to 2009, major contribution of CMG

was from canned fruits.

• Discontinued

the canned pineapple production in 2009 and canned sweet corn in 2013.

2016: Historical Highest Sales 2012-2013: Benefit from the great flood

Malee Brand Portfolio

7

Daily Nutrition Functionality Tactical

Malee 100% Juice UHT Malee 100% Juice Pasteurize Malee Coco Malee Nutrients Malee i-Corn Malee Healti Plus Malee Food Service Malee Tropical Malee Canned Fruit

OTHERS

Canned Fruit Dairy Product Other Beverages

First Choice Farmer

Chokchai Farm

UHT Pasteurize Canned Sweetened Condensed Non Dairy Creamer TurBusta Maxx Malee Light Malee Probiotics

Agenda

8

• Company Overview
• Business Update
• Results of Operations and Profitability
• Forward Looking

Premium Market (100% RTD Fruit Juice) 5,245MB 38% Medium Market (40- 99%% RTD Fruit Juice) 1,265MB 9% (+3% YoY) Economy Market (20- 39% RTD Fruit Juice) 2,976MB 21% (-10% YoY) Super Economy Market (<20% RTD Fruit Juice) 2,399MB 17% (+9% YoY) Others 2,018MB 15% (+7% YoY) (-13% YoY)

Domestic RTD Fruit Juice Market

9

Source: Neilson

MAT Mar 2017 Market Value of 13,903 MB, a Decrease of 0.3% YoY

Premium Juice UHT Market Share

10

MAT Mar 2017 Market Value of 4,872 MB, Growth of 10% YoY

Tipco 28% Malee 20% Unif 12% Doikham 22% Cocomax 9% Others 9% Tipco 32% Malee 22% Unif 14% Doikham 18% Cocomax 6% Others 8%

MAT Mar 2016 MAT Mar 2017

Note: Including Coconut Water Source: Neilson

Sales Structure

11

CMG: Contract Manufacturing

Domestic : International Business Brand : Contract Manufacturing

• Q1/2017 Domestic sales growth was -13% YoY.
• Q1/2017 Export sales growth was +22% YoY.
• Q1/2017 Brand sales growth was -4% YoY.
• Q1/2017 CMG sales growth was +1% YoY.

78% 72% 61% 66% 57% 22% 28% 39% 34% 43% 2014 2015 2016 3M/16 3M/17

Export Domestic

57% 52% 45% 47% 45% 43% 48% 55% 53% 55% 2014 2015 2016 3M/16 3M/17

CMG Brand

NEW MALEE COCO TASTY, FRESH, AND NATURAL

Domestic Business: New Product

12

New Products

MMBC – New Product Launch

13

• Jelly Vit, the jelly drink was launched in the mid
• f March 2017, the second product after Kratos

RTD Coffee.

• Market Position: Pretty Happy Drink
• Target: Adult Young Girls/ First Jobbers

Agenda

14

• Company Overview
• Business Update
• Results of Operations and Profitability
• Forward Looking

4,771 5,389 6,541 1,533 1,515

1,000 2,000 3,000 4,000 5,000 6,000 7,000

2014 2015 2016 Q1/16 Q1/17 Sales Revenue

Unit: Million Baht

• Q1/2017 Net profit increased by 8% YoY, in

accordance with the Company’s strategy and internal management for efficiency enhancement and cost reduction.

• Net profit included loss of 7MB from MMBC and profit
• f 7MB from the disposal of investment in LCF, which

is the reversal of impairment of goodwill in LCF in Q4/2016.

• MBCC loss was foreseen and going consistent with

the Company’s plan, while the loss was considered as a normal level for the business at the beginning stage launching new products into the market which requires high spending.

Financial Highlights

15

• Q1/2017 Sales slightly decreased by 1% YoY due to

the slowdown of domestic sales, especially from canned fruit.

• However,

export sales continued to perform

• utstandingly, both in Brand and CMG Business.
• 1%

YoY

307 331 530 110 118

100 200 300 400 500 600

2014 2015 2016 Q1/16 Q1/17 Net Profit

Unit: Million Baht +8% YoY

33.7% 31.4% 32.2% 30.1% 31.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

2014 2015 2016 Q1/16 Q1/17 %Gross Profit Margin 18.6% 17.4% 14.4% 14.6% 13.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

2014 2015 2016 Q1/16 Q1/17 %Selling Expenses /Sales

Profitability Margin

16

• Improved Q1/2017 GPM YoY was

due to enhanced production efficiency and different product mix.

• Improved Q1/2017 selling expenses

to sales was supported by the group’s cost control policy and increased sales ratio of CMG.

• Improved Q1/2017 NPM YoY was

due to efficiency enhancement and cost reduction. 6.4% 6.1% 8.1% 7.1% 7.7%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

2014 2015 2016 Q1/16 Q1/17 %Net Profit Margin

Statements of Financial Position

17

• Increased total assets were mainly

resulted from higher trade receivables as well as additional investment in machinery to improve production efficiency and prepare for increased level of production.

• Increased liabilities were mainly due to

higher trades payable due to the preparation of packaging materials for the upcoming crop season for the canned fruit production in Q2/2017.

• Increased equity of parent Company's

shareholders was contributed by

• perating profit during the year.

2,992 3,042 3,640 3,802

0.0% 50000.0% 100000.0% 150000.0% 200000.0% 250000.0% 300000.0% 350000.0% 400000.0%

2014 2015 2016 Q1/17

Total Assets

Unit: Million Baht

1,976 1,788 2,061 2,114

160000.0% 170000.0% 180000.0% 190000.0% 200000.0% 210000.0% 220000.0%

2014 2015 2016 Q1/17 Total Liabilities

Unit: Million Baht

1,012 1,250 1,575 1,687

0.0% 20000.0% 40000.0% 60000.0% 80000.0% 100000.0% 120000.0% 140000.0% 160000.0% 180000.0%

2014 2015 2016 Q1/17 Equity

Unit: Million Baht

Liquidity

18

• Improved current ratio was mainly due to

higher trade receivables, lower bank overdrafts and short-term loans from financial institutions as well as lower current portion of long-term liabilities, while a decrease in inventories resulting in higher quick ratio.

• Improved cash cycle days was due to

shortened inventory days and longer payment days.

• Reduced IBD/E and D/E was due to a

decrease in bank overdrafts and short-term loans from financial institutions, long-term liabilities, and liabilities under financial lease agreements as well as an increase in retained earnings from incurring profits. 0.98 1.13 0.95 0.96 0.53 0.66 0.50 0.54

30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0%

2014 2015 2016 Q1/17

Current Ratio (x) Quick Ratio (x)

1.12 0.68 0.75 0.68 1.95 1.43 1.31 1.25

0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0%

2014 2015 2016 Q1/17

IBD/E (x) D/E (x)

91 90 77 73

0.0% 1000.0% 2000.0% 3000.0% 4000.0% 5000.0% 6000.0% 7000.0% 8000.0% 9000.0% 10000.0%

2014 2015 2016 Q1/17 Cash Cycle Days

Return to Shareholders

19

• The Company normally pays dividend twice a

year.

• The Company has a policy to pay dividend

not less than 50% of the net profit from normal operation according to consolidated financial statement after deduction of tax revenue and legal reserve (with additional conditions).

Unit: Baht

• Improved ROA was due to a substantial

increase of the Company’s earnings.

• Improved ROE was due to a substantial

increase of the Company’s earnings. 15.5% 14.8% 20.4% 15.8% 20.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

2014 2015 2016 3M/16 3M/17 ROA 33.3% 29.3% 37.5% 28.6% 35.4%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

2014 2015 2016 3M/16 3M/17 ROE 1.50 1.05 1.11 1.20 1.90

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0%

2012* 2013 2014 2015 2016 Dividend per Share

Remark: *Adjusted at par value of 1.00 Baht

Agenda

20

• Company Overview
• Business Update
• Results of Operations and Profitability
• Forward Looking

2017 Looking Ahead

21

Domestic Brand: Renovations/ Portfolio Management CMG: Diversification International Business: Strategic Expansion

Added to MSCI Global Small Cap Indexes

Effective as of the close of 30 November 2016

Share Endorsements

22

Partn er

“Very Good” Level of CG Scoring

For more information, please visit our website: http://www.malee.co.th

• r contact: ir@malee.co.th. Tel: +66 64 301 7978