Strictly Private & Confidential 0 Nov 2018 Disclaimer The - - PowerPoint PPT Presentation

Strictly Private & Confidential

Nov 2018

1

Disclaimer

The provision herein does not constitute legal advice or investment opinions of any kind, neither is it intended as an

• ffer, solicitation for Carabao Group PCL. (“CBG” or “The Group”). The information presented within this material is

intended to indicate the Group’s operational and financial position at a given period of time and to be used, downloaded, and distributed for analyst briefings, and general meetings with CBG, and to be used for educational material in order to understand CBG’s operation only. The Group makes no representation that all information is complete and accurate for the purpose of producing a projection of CBG’s operations, performance, or financial position and may be susceptible to uncertainty and important changes based on political, economic, strategic, and other such uncontrollable factors. Forward looking statements in this presentation are based on the management’s assumption in light of information currently available and obtainable, as well as the aforementioned/unmentioned risks and

• uncertainties. CBG’s actual results may vary materially from those expressed or implied in its forward-looking

statements, and no assurance is made as to whether such future events will occur. The Group accepts no liability whatsoever for any loss arising directly or indirectly from the use or endorsement of any information contained herein by any users and/or third parties.

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Financial Summary

NET SALES ฿10,615mn  9%YoY

52% of

ENERGY DRINK SALES from OVERSEAS CLMV SALES ฿3,944mn  68%YoY

YTD D ENDI DING 30 SEPTE PTEMBER MBER 2018 18

TOTAL DOMESTIC SALES ฿5,802mn  1%YoY

SALES Via CASH VAN ~ ฿26,000 /van/ day  20%YoY

9M 9M18 AT A GLA LANCE NCE

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Financial Highlights

Total Revenue from Sales Total Sales from Energy Drink Total Gross Profit Total Gross Profit Margin

5

Domestic sales

DOMESTIC SALES BY CHANNEL BREAKDOWN OF DOMESTIC GPM BY BUSINESS

Domestic recovering GPM drove domestic business in 3Q18

QoQ as a combined result of improved efficiency and reduction

• f key material prices

QoQ due to price hike made to Coffee RTD QoQ due to change in product mix

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Note: A number of niche positioned brands expanded their consumer groups and thus gained increasing shares in the market, altogether commanding higher market shares, up to 10% 9M18 from 8% in 2017

78% 84% 84% 90% 91% 91% 90%

Selling Distribution (Coverage) Selling Distribution (Coverage)

Significant share of Thai energy drink market

95% 95% 95% 96% 96% 95% 95%

Energy drink market remained in stable shape in 3Q18 and thus posted -1% during 9M18 versus -2%yoy during first half of the year

Source: Nielsen report as of Sep’18

7 THB mn FY15 FY16 FY17 2Y-CAGR 3Q17 2Q18 3Q18 %YoY %QoQ 9M18 %YoY Cambodia 1,547 2,074 2,489 27% 605 963 1,177 94% 22% 3,171 81% Myanmar 223 279 422 38% 69 179 132 92%

• 27%

473 60% Vietnam 98 173 356 91% 142 163 40

• 72%
• 76%

276

• 2%

Yemen 167 202 225 16% 70 38 31

• 55%
• 18%

70

• 38%

Afghanistan 164 481 257 25% 62 30 26

• 57%
• 11%

56

• 78%

China

• 1,019

n/a 407 195 116

• 71%
• 41%

520

• 49%

Others 77 132 53

• 17%

21 47 30 42%

• 37%

98 134% Overseas sales from CBD 2,276 3,340 4,821 46% 1,374 1,615 1,551 13%

• 4%

4,664 24% Overseas sales from ICUK

• 16

202 n/a 97 23 45

• 53%

97% 112

• 34%

Total 2,276 3,356 5,024 49% 1,471 1,638 1,597 9%

• 3%

4,776 22%

Overseas sales

Overseas Cambodia delivered impressive pace of growth

8 Strong rise on the funding side to support our expansion projects; but still well below our group policy i.e. 2.0x

Financial Highlight: Non-ICUK vs ICUK EBITDA

EBITDA

Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016

Non-ICUK (THBmn) ICUK (THBmn) Consolidation (THBmn)

Interest bearing debts / Total Equity Total Liabilities / Total Equity

Key indicator of consolidated debt profile

Representing global sponsorship fees incurred by Non-ICUK group of companies Representing global sponsorship fees incurred by ICUK group of companies Representing global sponsorship fees incurred by consolidation

9 Unit: THB million ASSETS Dec-17 Sep-18 Change LIABILITIES Dec-17 Sep-18 Change Current Assets Current Liabilities Cash, Cash Equivalents 147 292 145 Bank overdrafts&short-term loans from financial institutions 845 871 26 Current Investments 7

• (7) Trade and other payable

1,897 2,208 311 Trade and other receivable 960 1,160 200 Current portion of long-term loans from financial institution 300 299 (2) Inventories 656 788 131 Other current liabilities 164 143 (21) Other current assets 389 577 188 Total Current Liabilities 3,207 3,521 314 Total Current Assets 2,159 2,817 658 Long-term loan from financial institutions 2,190 1,264 (926) Debentures

• 2,785

2,785 Other non-current liabilities 118 133 16 Total non-current liabilities 2,308 4,183 1,875 Non-Current Assets Total Liabilities 5,515 7,704 2,189 Long-term Investment

• 0 SHAREHOLDERS' EQUITY

Investment Properties 103 101 (2) Issued and fully paid up share capital 1,000 1,000 Property, plant & equipment 9,609 11,039 1,430 Premium on shares 3,963 3,963 Intangible Assets 67 72 5 Retained earnings 1,775 1,720 (54) Deferred Tax Assets 31 44 13 Other components of shareholders' equity 376 21

• 1

Other non-current assets 15 12 (2) Equity attributable to owners of the Company 7,114 6,662 (451) Goodwill 535 516 (19) Non-controlling interests of the subsidiary 108

• 235

344 Total Non-Current Assets 10,361 11,785 1,424 Total shareholders' equity 7,005 6,898 (107) Total Assets 12,520 14,602 2,082 Total liabilities and Equity 12,520 14,602 2,082 STATEMENT OF FINANCIAL POSITION

Statement of financial position

10 10

Unit: THB million 2015 2016 2017 2017 3Q2017 3Q2018 Change 3Q2017 3Q2018 9M2017 9M2018 Change %sales YoY %sales %sales YoY Revenue from sales 7,753 9,943 12,904 100.0% 3,523 3,638 3.3% 100.0% 100.0% 9,707 10,615 9.4% Costs of goods sold 4,893 6,388 8,840 68.5% 2,373 2,430 2.4% 67.4% 66.8% 6,554 7,248 10.6% Gross profits 2,860 3,555 4,065 31.5% 1,150 1,208 5.1% 32.6% 33.2% 3,153 3,367 6.8% Selling expenses 1,120 1,462 2,379 18.4% 659 703 6.7% 18.7% 19.3% 1,791 2,045 14.2% G&A expenses 395 553 741 5.7% 186 210 13.2% 5.3% 5.8% 523 597 14.1% Operating profits 1,380 1,540 945 7.3% 305 295

• 3.4%

8.7% 8.1% 839 725

• 13.6%

Other incomes 121 147 164 1.3% 45 19

• 57.4%

1.3% 0.5% 130 90

• 30.8%

EBIT 1,466 1,687 1,109 8.6% 351 314

• 10.4%

10.0% 8.6% 969 815

• 15.9%

EBITDA 1,702 1,914 1,372 10.6% 422 433 2.6% 12.0% 11.9% 1,153 1,149

• 0.4%

Interest expenses 2 4 48 0.4% 19 25 34.3% 0.5% 0.7% 29 76 164.0% EBT 1,465 1,683 1,061 8.2% 332 289

• 12.9%

9.4% 8.0% 940 739

• 21.4%

Income tax expenses 209 278 261 2.0% 60 84 39.4% 1.7% 2.3% 218 245 12.3% Net profits for the period 1,256 1,405 801 6.2% 272 205

• 24.5%

7.7% 5.6% 722 493

• 31.6%

1,256 1,490 1,246 9.7% 389 255

• 34.4%

11.0% 7.0% 1,037 646

• 37.7%

Equity Holder of the Company

Statement of comprehensive income

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Appendix: Decomposition of Non-ICUK vs ICUK

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Decomposition of Non-ICUK vs ICUK (1/4)

Sales and Gross Profit

Gross profits margin

Domestic sales

Sales (THBmn) Gross Profits (THBmn)

Overseas sales

Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016

• Branded OWN picked up QoQ from both sales and gross profit

margin perspectives

• Export sales by CBD served and has strong tendency to serve

as a powerhouse of future growth to the top line

• ICUK continued to marched progress of product visibility

through major grocery accounts amidst stiff competitions

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Decomposition of Non-ICUK vs ICUK (2/4)

Advertising & Promotions (Ex-Global Sponsorship) Non-ICUK vs ICUK

Non-ICUK (THBmn) ICUK (THBmn) Non-ICUK as a % of total branded sales ICUK’s cans sold - in UK

Total A&P per can sold both in the UK and outside UK markets (THB/can)

Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016

• Non-ICUK’s

Breakdown of A&P of Non- ICUK selling expenses as shown in the page does not include expenses related to exports from CBD which were insignificant representing less than 1%

• f Exports Sales from CBD

Nationwide PULL marketing activations i.e. consumer marketing and TV ad to gain brand awareness acceleration Of which, included THB 24mn sponsorship for 2018 World Cup Broadcast in domestic market

14 14

Decomposition of Non-ICUK vs ICUK (3/4)

Selling Expenses Non-ICUK vs ICUK

• Non-ICUK’s fixed costs

is relatively stable at 3%

• f Non-ICUK sales

Non-ICUK (THBmn) ICUK (THBmn) Non-ICUK as a % of total Non-ICUK sales ICUK’s cans sold in UK and Outside UK

Total Logistics expenses per can sold in both UK and outside UK markets (THB/can)

Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016

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Decomposition of Non-ICUK vs ICUK (4/4)

General & Admin Expenses Non-ICUK vs ICUK

Non-ICUK (THBmn) ICUK (THBmn)

• Fixed costs increased in line with the number of headcounts, both managerial and operational roles, to underpin our feat of strategic

business expansions going forward

• Services fees included professional/counsel fees that resulted from our joint venture exercises

Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016

Of which, included THB 18mn ACM’s pre-operation expenses before the commercial runs in Nov’18

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Appendix: Corporate Profile

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Categories Product Portfolio Energy drink Coffee Others

Company overview

Carabao is the 2nd largest energy drink company in Thailand with strong distribution channel and a successful overseas business, which represents c.45% of the total revenue

Business overview Product overview

Carabao Sport electrolyte drink Drinking water 3-in-1 instant coffee RTD coffee drink Source: 1. Nielsen energy drink market report, September 2018 ("Nielsen Report")

Carabao's market share evolution1

Thailand energy drink market share

• Founded in 2001 as a partnership between 3 founders one of

which is the leading singer of Carabao (Thai legendary folk band), the Carabao Group is now the 2nd largest energy drink company in Thailand with 23.4% market share1

• Its main product, Carabao Energy Drink, is packaged into amber

glass bottles or aluminum cans. Other branded products include bottled water, coffee, Carabao Sport electrolyte drink and other 3rd party products

• Vertically integrated business model - CBG manufactures and

distributes its own products, while excess distribution is maximize by distributing 3rd party products

• Carabao has strong in-house production capabilities of glass

bottle, and aluminum can (production to commence in Q3 2018)

• Strong distribution channel with presence in both traditional and

modern channel

• Over 50 first tier agents
• 31 distribution centers across Thailand
• c. 330 cash vans, covering 220,000 retailers
• Successfully tapped into global markets
• Strong presence in international markets including Cambodia,

Myanmar, Vietnam, Laos and other countries

• Penetrating into new key strategic countries i.e. China, UK

18 18

Domestic and international business overview

Sales breakdown

Increasing presence in the international market to drive growth

Domestic revenue by products

FY2017 domestic revenue: THB 7,854m

International revenue by products

FY2017 international revenue: THB 5,050m

International revenue by country

FY2017 international revenue: THB 5,050m

Established overseas business diversifies dependence on Thailand

19 19

FOUNDERS

Founded Tawandang German Brewery in 1999 Founded Carabao Tawandang in 2002

• Mr. Sathien Setthasit

CEO Miss Nutchamai Thanombooncharoen Managing Director

• Mr. Yuenyong Opakul

(Add Carabao) Senior Deputy Managing Director

Managed business with Mr. Sathien since 1999 Managing Director of Carabao since inception Formed the origin of Carabao - the Carabao band

• in1977

Gathered millions of fans for the brand since

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Carabao is Thailand’s legendary music-for-life & one of the most respected band in Thailand

Carabao & Santana in Bangkok 29th Feb. 2016 [Est. 1981]

Strong brand recognition associated with Carabao band

Songs for life music are reflections of aspects of Thai society For over 30 years, Carabao songs have been known to speak to the Thai people in a manner that can easily be related to their own life experience and provide the hope and strength to keep fighting. The result is a truly passionate fan base that are overlapping with energy drink target groups across the country that lives and breathes the Carabao “Fighting Spirit”.

21 21

Shareholding structure

• Mr. Sathien Setthasit’s

Group

• Ms. Nutchamai

Thanombooncharoen’s Group

• Mr. Yuenyong Opakul’s

Group Free Float

34% 23% 14% 26%

Note: (1) CBG’s shareholding in CVHLUX increased from 51.0% to 84.3% effectively on 8 January 2018 due to exercising the right offerings of CVHLUX and converting shareholders’ loans to equity, in accordance with the Change of Overseas Subsidiaries’ Capital Structure transaction (2) The remaining portion of 26% is held by Showa Denko Group, a Japanese business partner Others

3%

Remark: Shareholding portion as of August 27, 2018

• Manufactures,

markets and sells the Group’s products

• Manages the

domestic distribution of the Group’s product

• Manufactures and

supplies glass bottles required for the manufacture the Group’s product

CBD DCM APG ACM CHHK CVHLUX ICUK CTHK

• Manufactures and

supplies aluminum cans used as packaging materials for the Group’s Product

Operating Subsidiaries Holding Subsidiaries

CARABAO GROUP

100% 100% 100% 100% 100% 100% 74% (2) 84% (1)

THAILAND OUTSIDE THAILAND

Registered and Fully Paid-up Capital THB 1,000 Million

• Distribution, selling

and marketing in the UK and outside-Asia

• International trading

arm

22 22

Management Team

INSTRUMENTAL TO BUILDING COMPANY’S SUCCESS

• 1. People: Develop our people with good attitude, willingness to learn, innovation,

accountability

• 2. Work System: Execute with concise and international standard work system
• 3. Organization & Management: Operate with clear objective and understandable

responsibility, proper organization structure, and project-based approach

• 4. Technology: Embed technology and innovation in our processes through

production, management, sustainability development

• 5. Product: Produce quality and well-known world class product
• 6. Brand: Be wealthy and modern world class brand
• 7. Corporate Image: Be known as world class organization with good governance

and social responsibility

MISSION VISION World Class Product, World Class Brand

• Mr. Sathien Setthasit

Chief Executive Officer Co-Founder of the Group in 2001

• Ms. Nutchamai

Thanombooncharoen Managing Director Co-Founder of the Group in 2001

• Mr. Yuenyong Opakul

(Add) Senior Deputy Managing Director

• Co-Founder of the

Group in 2001

• Lead singer of

Carabao

• Brand Ambassador of

Carabao energy drink

• Mrs. Wongdao

Thanombooncharoen Senior Deputy Managing Director Been with the Group since 2008

• Mr. Kamoldist

Smuthkochorn Deputy Managing Director – Marketing Been with the Group since 2002

• Mr. Pongsarn

Khlongwathanakith Chief Financial Officer Joined in 2015, from CIMB Investment Bank

• Mr. Kartchai

Jamkajornkeiat Assistant Managing Director – Production/ Int’l Business Been with the Group since 2012

• Mr. Romtham

Setthasit Deputy Managing Director – Int’l Business Been with the Group since 2015

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Key Milestones and Developments

• NO. 1

Challenger

2004 Began exporting to 15 countries Oct 2002 Carabao Dang was launched 2012 DCM established as a distributor for Carabao products 2013 APG manufactured glass bottles for Carabao products 2004 In 18 months of the launch, Carabao overtook Krating Daeng position to become the No. 1 challenger in the market 2014 Start Plus Zinc an electrolyte beverage was launched; renamed to Carabao Sport in 2018 Nov 2014 Carabao Group began trading in Stock Exchange of Thailand 2015 Start establishing

• wn distribution centers

with a national coverage

• f 300,000 outlets

Jul 2016 Carabao 3in1 Coffee was launched Oct 2016 Carabao RTD Coffee was launched 2016 Carabao Drinking Water was launched 2015 Sponsorship of Chelsea F.C. June 2017 Sponsorship of the EFL Cup; The Carabao Cup. Mar 2017 APC established as a JV with SHOWA to produce aluminum cans June 2018 Carabao Green Apple was launched in Thailand

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Manufacturing facilities

Energy drink production facilities

• 11 production lines
• Prod. Cap. of 1,800 million bottles p.a.
• 7 production lines
• Now: Prod. Cap. of 1,400 million cans p.a.

Bottles filling Cans filling

• Prod. Cap. of 1,300 million bottles

p.a.

• Maximum molten glass production of

310X2 tons per day APG glass bottle manufacturing facility ACM Aluminum can manufacturing facility

• Prod. Cap. of 1,000 million cans p.a.
• To be commercialized in 4Q2018
• Technology knowhow supported by

Showa Denko Group, a leading aluminum company from Japan (JV with Showa Denko Aluminum Can)

Certifications: Certifications:

State-of-the-art manufacturing facilities to ensure safe and efficient production

Plant location: 50 KM from central Bangkok

25 25

Dedicated in-house marketing team has established strong relationships with multiple media channels, enabling us to react to market trends and minimize lead time and costs Flexible uses of multimedia channels to reach target consumers: media advertising, on-the-ground marketing team, brand ambassador and event sponsorships Global marketing platform via international football sponsorships to widen windows of opportunity in global stage Below the Line On-ground marketing More than 80 BaoDang Girl Teams, consisting of c.600 members, promote social activities Brand Ambassador and events sponsorships Celebrity spokesperson promoting our brand, as well as enhancing corporate image Contributes significantly in establishing our brand Regularly sponsor events which appeal to target consumers

Above the Line TV commercials for wider reach Print ads in magazines, newspapers and posters

Marketing Channels

26 26 End Consumers Carabao Group

• 1. Traditional Trade – 80%1
• 2. Modern Trade – 20%1
• 3. Importers, Distributors,

International Dealers Domestic Market – c.55%1 International Market – c. 45%1 End Consumers

… … …

Tier 1 Tier 2 Tier 2 Tier 3 Tier 3 Tier 3

Retailers

Convenience stores, Supermarkets, Hypermarkets Traditional retail shops ~ 50 agents ~ 500-1,000 sub- agents

Note: (1) Sales Figure, 9M2018 (2) Launched in Q2/15 . Reach 31 distribution centers in March 2017

• B. Cash Vans – 31%2
• A. 3-tiered agent distribution network – 49%
• 31 DCs
• 328 Vans
• 220,000 retailers

Strong distribution network covering both modern and traditional channels with unique cash van strategy

Comprehensive Distribution Network

27 27

7 DCs 9 DCs 3 DCs

W

10 – 15 Vans / DC 40 retails / Van / Day 10,000 retails / DC

220,000 retail network

31 DCs with 328 Vans, covering approx. 220,000 retailers nationwide

4 DCs 2 DCs 6 DCs

Note : Base on Information at September 2018

Cash Vans & DCs nationwide

28 28

Carabao Energy Drink (Original) Carabao Energy Drink (Original Export) Carabao Carbonated Carabao Ginseng Edition Carabao Carbonated (Original) Carabao Carbonated (Sugar Free) Carabao Carbonated (Green Apple) Carabao Energy Drink (The PRC Market) Carabao Carbonated (Mandarin Orange)

• 150ml amber

glass bottle

• Flat taste
• Caffeinated

+ B12

• 250ml

aluminum can

• Flat taste
• Caffeinated +

B12

• 325ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• 325 ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• Ginseng

Extract

• 325ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• Less sugar

(1:4)

• 325 ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• Sugar Free
• 325 ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• Green Apple

Flavour

• 250ml

aluminum can

• Non-

Carbonated

• 325 ml

aluminum can

• Carbonated
• Caffeinated +

Multivitamins

• Green Apple

Flavour Domestic (mainly) Export Only Export in Asia First market: Afghanistan First market: UK First market: UK First market: UK The PRC Market First market: UK October 2001 2004 May 2015 February 2016 April 2016 August 2016 October 2016 March 2017 April 2018 10 THB (domestic) Differ in various countries 2,000 Riel (17 Baht) Differ in various countries 1.19 GBP 1.19 GBP 1.19 GBP 6 CNY 1.19 GBP

Our Product Portfolio (Energy Drink SKUs)

29 29

Products Carabao Sport Carabao Drinking Water Carabao Coffee (Rich Aroma) Carabao Coffee (Espresso) Carabao Coffee (Robusta) Carabao Coffee (Espresso) Descriptions

• 250ml

glass bottle

• Flat taste
• Electrolyte

& vitamins

• (No

caffeine)

• 2 size = 600ml

& 1200ml

• Outsource

production

• Distribution

through Cash Vans Channel

• 30 small sticks in

1 pack

• Outsource

production

• Distribution

through Cash Vans Cannel and Tesco

• 30 small sticks in 1

pack

• Outsource

production

• Distribution

through Cash Vans Cannel and Tesco

• 180ml can
• Outsource

production

• Distribution

through Cash Vans Channel, BigC and 7- Eleven

• 180ml can
• Outsource

production

• Distribution through

Cash Vans Channel, BigC and 7-Eleven

Domestic Market Launch Date May 2014 February 2016 July 2016 November 2016 Retail Selling Price 10 THB 7 & 12 THB 85 THB 10 THB

Our Product Portfolio (Non-Energy Drink SKUs)

30 30

Products Seaweed Dish Washing Liquid Peanuts Fish Snacks Toothbrush Razor Juice Retail Selling Price (THB) 5 10 5 5 10 10 10 Launch Date November 2015 April 2016 June 2016 July 2016 Products Fabric Softener Squid Snacks Cigarettes (10Skus)1 Toilet Cleaner Tissue Detergent Retail Selling Price (THB) 10 5 40 - 86 25 5 10 Launch Date August 2016 September 2016 October 2016 December 2016

1

Note: As of December 2016

3rd Party Products in Cash Vans

31 31

Note Based on an assumption of THB 33.00 = 1 USD

Statistic Information

Carabao Group PLC. As of 16 November 2018 Closing Price: THB 44.75 Ticker SET: CBG Reuter: CBG.BK Bloomberg: CBG:TB Google Finance: BKK:CBG Listing date 21 November, 2014 Listing Venue SET F&B, SET50 Par Value 1 Baht Shares outstanding (mil.) 1,000 Market Cap. THB 44,750mn/USD1.4 bn 52 weeks High/Low THB 108.50 / THB 40.75 Free Float 25.91% Foreign Limit 49.0% Dividend policy at least 40% of consolidated net profit EPS (TTM) THB 0.86 P/E (TTM) 52.3x P/BV 6.72x Dividend Yield 1.0% Auditor: EY Board of Directors 9 members (4 independent)

32 32

WORLD CLASS WORLD CLASS

Carabao Group Public Co., Ltd. Tel: +66 2636 6111 Ext.882 Email : IR@carabaogroup.com www.carabaogroup.com/en

PRODUCT BRAND Investor Relations