Analyst Meeting Q1’2020 Financial Performance
13 May 2020
Osotspa Public Company Limited (OSP)
Q12020 Financial Performance 13 May 2020 Disclaimer Statements - - PowerPoint PPT Presentation
Osotspa Public Company Limited (OSP) Analyst Meeting Q12020 Financial Performance 13 May 2020 Disclaimer Statements included or incorporated in these materials that use the word believes, anticipate, estimate, target,
13 May 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.
4%
Energy Drinks + 1.2%
as customers back to trusted brand together with positive addition of new variants
Functional Drinks + 26.2%
+ 37.1%
Maintained strong no. 1 in functional drinks aligned with the healthy trend after capacity debottlenecking in Q2’19
Remark : * Net Profit attributable to owners of the parent ** Net Profit attributable to owners of the parent to Total Revenue from Sales
BBM + 6.0 % Driven by growth in major categories (liquid soap, baby powder and fabric wash) 12Plus
Growth in body lotion offset with decline in both cologne and cooling powder OEM
OEM – PC turned to growth OEM – Glass decreased from shifting to OSP own use Confectionary + 13.1% Driven by growth from both Botan and NPD Ole Fruity Fresh launched mid Feb’20 CLMV + 4.1% Driven by positive growth in all major cities (Myanmar beverage reported growth at 4.0%) Others +17.2% Driven by growth in Middle East Net profit* +4.2% YoY Net profit margin** at 13.8% vs. 14.0% in Q1’19 Record High GM at 35.4% improved by 60 bps YoY from “Fit Fast Firm” project driving
Net Profit* includes gain from business acquisition – Calpis Osotspa
Net Profit*
Net Profit Margin**
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(13.9%) (15.7%) (6.9%) (7.3%) Q1'19 Q1'20 34.8% 35.0% 35.4%
1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600
Q1'19 Q4'19 Q1'20
888 926 14.0% 13.8%
10.0% 10.9% 11.8% 12.7% 13.6% 14.5% 500 550 600 650 700 750 800 850 900 950 1,000
Q1'19 Q1'20 To the owner of the parents
Revenues Gross Margin SG&A Net Profit
Admin Exp Selling Exp ⚫ Net Profit Margin
6,512 6,906
Q1'19 Q1'20
+0.6% +0.4%
(1,322) (1,538)
⚫ Other Income (20.8%) (23.0%)
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5 Key Changes in Balance Sheet Items
: THB 1,063mn increase in PPE from investment in Calpis Osotspa, and new beverage filling lines in Thailand and Myanmar : THB 1,608mn increase in long term investment from the additional investment in Basecamp Brews Ltd and impact from adoption of TFRS 9
term loan to support factory construction in Myanmar
equity from the impact of currency translation and the adoption of TFRS 9, while retained earnings decreased THB 1,026 million from the 2019 interim dividend approved by BOD with the total amount of THB 1,952 million offsetting with profit for the period.
2,819 2,834 881 (1,076) 210
Beginning cash and cash equivalents (31 Dec 2019) Net cash from
Net cash used in investing activities Net cash from financing activities Ending cash and cash equivalents (31 Mar 2020)
Cash Flow Movement Operating CF: THB 881mn cash inflow from 1) THB 915mn Net profit 2) THB 454mn Non-cash transactions (depreciation and provision) 3) THB -439mn change in working capital 4) THB -50mn tax paid Investing CF: THB 1,076mn cash outflow from 1) THB 1,036mn PPE acquisition 2) THB 93mn from additional investment in Calpis Osotspa and Basecamp Brews Ltd 3) THB -64mn decrease in investment in private fund Financing CF: THB 210mn cash inflow from 1) Additional long term loan to support factory construction in Myanmar
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Cash Flow (as at 31 Mar 2020) 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.
0 Baht 5 Baht 3 Baht 1 Baht
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 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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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
M-150 Original M-150 Black Galingale
MARKET SHARE
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Som In-Sum with Boom Panadda featuring social media viral girl group, Super Valentine
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Limited Edition
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Tremella Brocolli Monk fruits Grape Seed Pine Bark Monk Fruit Acai Aronia Berry Purple Carrot Grape Seed Pine Bark Red Grape Camu Camu Sea Buckthon Aronia Berry
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“The most delicate and sensitive formula from Babi Mild”
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“Extra light texture with unique perfume equity from Twelve Plus”
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Engaged all employees and received 1,160 ideas so far
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(Osotspa Leadership Team)
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Leverage trusted brands
Product / Format that
Actively Participate in home delivery business
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Secure RM/PM and alternative sourcing
Improve production efficiency and agility
Accelerate & Expect Full Year Impact > 800 MB
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Spending less than THB 4 billion
Positive Cash Flows position Scenario Planning and Stress-Test
Monitor financial status of distribution chains Link suppliers/distributors with banks for supply chain finance (if any)
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Developed and donated medical equipment to 28 hospitals Delivered beverages and alcohol cleaning products to 130 hospitals nationwide for 3 months
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โครงการโอสถสภาพลังฮึดสู้เพื่อคนไทย
Big Cleaning Mission with the Royal Thai Army, volunteers and Bangkok officials Support officials who work vigorously day and night Distribute food and drinks to surrounding communities
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Set of Actions Osathanugrah Foundation
relieve the impact of Covid-19 following a request from Prime Minister Prayut Chan-o-cha
relief project and keep the public informed on developments
Chulalongkorn Memorial Hospital for purchasing medical equipment needed for providing care to Covid-19 patients Bangkok University
aid to students and employees to help relieve the effects of the
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Investor Relations Email: ir@osotspa.com Tel: 02-351-1152 Website: www.osotspa.com