Analyst Meeting
Q1’19 Financial Performance
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2
Financial Performance
Core Strategy Updates
Q2’19 Business Updates
Agenda
3
Financial Performance
Business UpdateNew Business Segment Grouping and Additional Provisions
5
Segment Regrouping
Provision for retirement benefits
When: Q1’19Impact to account treatment:Re-group segment report for Q1’19 and Q1’18 into 3 main segments- Beverage: All beverages including C-Vitt and Calpis- Personal Care: Babi Mild, Twelve Plus, Exit- Others: OEM, Healthcare, Confectionary, OtherImpact to Financial Statement: - No impact
When: Q2’19 (May 2019)Impact to account treatment: Set up additional provision for retirement benefitsImpact to Financial Statement: Recognize expenses approximately 100.6 million baht in the consolidated financial statements
Q1’ 19 Financial Highlights – by Segment
6
Net profit* +13.4% YoY
Net profit margin** at 14.0% vs. 12.8% in Q1’18
Favorable GM at 34.8%improved by 270 bps YoYfrom “Fitness First” project driving overall costs down
CLMV +11.8% at constant FX, reported Net sales +0.8%
PC Int’l sales +31.6% mainly from Babi Mild launch in Vietnam
OEM +13.8% driven by OEM-Bottle sales (+44.5% YoY & 4% QoQ) after completion of cold tank repair in Q2’18, however partly offset with OEM-PC
Healthcare 19.5% driven by Banner and Tard 4
Twelve Plus +22.2% driven by momentum of Cool Powder and Perfume Mist launched last year.
Babi Mild -7.8% driven high last year stock build-up to prepare for company name change
C-Vitt +148.9%maintained no. 1 position in functional drinks for 3 consecutive quarters since Q3’18
Chalarm +25.7% continued strong growth momentum of ChalarmBlack Galingale
Som In-Sum +21.6% Peptein Launch Peptein
Plus (NPD) in Feb’19
Thailand Beverages
Net Sales: THB 4,388M
4.0%
Thailand Personal Care
Net Sales: THB 564M
3.4%
Others (OEM/ Health care/ Confectionary)
Net Sales: THB 397M
19.2%
International
Net Sales: THB 1,018M
0.3%At constant FX: 8.6 %
Net Profit*
THB 888M
14.0%
Net Profit Margin**
Remark : * Net Profit attributable to owners of the parent ** Net Profit attributable to owners of the parent to Total Revenue from Sales
Total Revenue from Sale 6,366M (+4.2%YoY) driven by Energy Drinks-Herbal Variants, C-Vitt and OEM-Bottle sales
(15.1%) (13.9%)
(5.6%) (6.9%)
Q1'18 Q1'19
32.1%
34.5% 34.8%
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
Q1'18 Q4'18 Q1'19
783888
12.8%
14.0%
7.5%
8.5%
9.5%
10.5%
11.5%
12.5%
13.5%
14.5%
0100200300400500600700800900
1,000
Q1'18 Q1'19
To the owner of the parents
Total Revenue Growth 2.7% Revenues Gross Margin
SG&A Net Profit
Q1’19 Financial Highlights
Admin Exp
Selling Exp
Net Profit Margin
6,340 6,512
Q1'18 Q1'19
+2.7%
+0.3%
(1,262) (1,322)
Other Income
(20.7%) (20.8%)
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Net Sales Analysis: Thai Beverages
+21.6%SALES GROWTH YOY
Chalarm Black Galingale Turnaround Chalarm brandContinued Success of Campaign
“Aroi Jing Mai Manoh” through Activation promotion nationwide
Continued reinforcing brand awareness and ensure adequate supply
+148.9%SALES GROWTH YOY
9
+25.7%SALES GROWTH YOY
Focus on below-the-line activities
8
Net Sales Analysis: Thai Beverages
37.2%MARKET SHARE
Sponsorship in both music (Bodyslamconcert) and sports (World Super Flyweight Boxing Championship)Communication campaign “Poo
Klar LIPO” with local activations (emphasize of Japan heritage)
8.6%MARKET SHARE
Focus more on online channels and below-the-line activities
Launch new formula Peptein Plus in Mar’19 with Impressive performance in 7-11
4.2%MARKET SHARE
9
+22.2%SALES GROWTH YOY
Net Sales Analysis: Thai Personal Care
Babi Mild White Sakura Massive Trial Campaign in Feb’19
Twelve Plus x BNK48 Cosmetic RangeSpecial Collaboration in Feb’19
Summer CampaignLaunched in Feb’19
-7.8%SALES GROWTH YOY
The Launch of EXIT x BNK48 Special Collaboration in Jan’19
+22.3%SALES GROWTH YOY
EXIT x BNK48 Collectable Premium in Feb’19
10
Balance Sheet (as of 31 Mar 2019)
THB 23,433mn THB 23,456mn
ASSETS
(THB mn)
As at
31 Mar 2019
As at
31 Dec 2018
Cash and cash equivalents 3,840 4,486
Current investments 2,596 3,500
Trade and other receivables 3,209 3,030
Inventories 1,389 1,557
Other current assets 79 67
Total Current Assets 11,113 12,640
Net PP&E 7,370 6,518
Long term investments 3,575 2,608
Other assets 1,375 1,690
Total Non-Current Assets 12,320 10,816
Total Assets 23,433 23,456
LIABILITIES and EQUITIES
(THB mn)
As at
31 Mar 2019
As at
31 Dec 2018
Trade and other payables 3,955 4,131
Other liabilit ies 1,187 1,022
Total Liabilities 5,142 5,153
Issued and paid-up share capital 3,004 3,004
Share Premium 11,848 11,848
Retained earnings 3,285 3,298
Surplus on business combination under
common control 353 353
Other components of SE (423) (415)
Non-Controlling Interest 224 215
Total Shareholders' equity 18,291 18,303
Total Liabilities & Equity 23,433 23,456
18,291 18,303
553 552
4,589 4,601
12,320 10,816
11,113 12,640
As at 31 Mar 2019
As at31 Dec 2018
Current assets Non-current assets Short-term loans
Other current liabilities Non-current liabilities Shareholders' equity
Key Changes in Balance Sheet Items
• Total assets: Decrease by THB 23mn from Operation: THB 646mn decrease in cash and cash equivalents: THB 168mn decrease in inventory: THB 304mn decrease in other assets: THB 179mn increase in trade and other receivables.: THB 64mn increase in Net investments (Move short term to long term investment): THB 852mn increase in PPE
• Total liabilities: Decrease by 11mn: THB 176mn decrease in trade and other payables: THB 165mn increase in other liabilities.
• Shareholders’ equity: increased by THB 12mn11
Cash Flows and Key Ratios
12
Cash Flow Movement
• Operating CF: THB 1,039mn cash inflow from
1) THB 897mn Net profit
2) THB 232mn Depreciation
• Financing CF: THB 910mn cash outflow from
1) THB -900mn Dividend payment
Cash Flow (as at 31 Mar 2019) Key Financial Ratios
Units: THB mn
Notes: ROE and ROA are annualized
4,486
3,840
1,039
Beginning cashand cash
equivalents(31 Dec 2018)
Net cashfrom
operatingactivities
Net cashfrom
financingactivities
Net cashused in
investingactivities
Ending cash andcash equivalents(31 Mar 2018)
(910)(775)
• Investing CF: THB -775mn cash outflow from
1) THB -800mn PPE acquisition
2) THB -18mn Investment in debt securities’
3) THB 48mn interest received
Q1'19 Q1'18
Liquidity Ratios
Current ratio (times) 2.4 0.6
Number of days of inventory 32 39
Collection period (days) 43 43
Accounts payable (days) 43 43
Profitability Ratios
Gross profit margin (%) 34.8 32.1
EBITDA margin (%) 21.0 20.2
Net profit margin for the period (%) 14.1 13.1
Net profit margin attributable to owners of the parent (%) 14.0 12.8
Return on equity (%) - trailing 28.3 67.0
Return on assets (%) - trailing 15.8 16.8
Other Ratios
Total debt to equity (times) 0.3 3.1
Core Strategy Updates
Production Efficiency – New facilities
• New glass factory (SGA2)
• New factory in Myanmar
• New cullet treatment lines
• Total Productive Maintenance (Increase capacity without major investment in new production line)
Business Update: Core Strategies Progress Update
14
Strengthen domestic presence in broader non-alc. beverages and expand PC
Leverage market-leading position in Thailand to sustain and expand to overseas markets
Focus on cost-efficiency and margin enhancement through NRM principle
Maintain Energy Drink Market Share (Value) : Q1’19
53.7%
Grow Functional Drink Market Share Q1’18 Q1’19
28.3%35.6%
Personal care sales growth in Q1’19 :
+6.4%Total CLMV sales growth for Q1’19 (at constant FX):
+11.8%
International PC sales growth For Q1’19:
+31.6%OEM Bottle sales – Improve margin overall beverage by sharing fixed costs
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Fit Fast Firm
Q1’19 GM
= 34.8%+270bps YoY
+44.5%YoY
Continued impact in Q1’19:
Bev CLM sales growth for Q1’19 (at constant FX):
+10.7%
2019 “Fit Fast Firm” Project►Reap benefits from projects implemented in 2018► Increase efficiency through new cullet treatment lines ►New lighter weight bottles ►Warehouse and distribution optimization►OEM-PC initiatives
Q2’19 Business Updates
Update Activities Q2’19
16
New LINE OA for M-Point collection campaign
Myanmar Update
17
JAN’19 FEB’19 Mar’19
Construction Thilawa progress is on track
17
Thilawa Site
18
Thank you
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