Annual General Meeting 26 th April 2018 1 +6.2% Volume Growth (5-yr - - PowerPoint PPT Presentation

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Annual General Meeting

26th April 2018

39 42 47 50 53 52 2012 2013 2014 2015 2016 2017

+6.2% Volume Growth (5-yr CAGR)

+/- vs. PY +14% +10% +12% +5% +6%

• 1.5%

Category +/-

(Y17 vs. Y16)

Sparkling

• 1.7%

Water +1.9% Still (excl. water)

• 2.1%

Total

• 1.5%
• Vol. Growth by Category

(Unit: MUC)

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Key Financial Highlights

(unit: MB)

Y16 Y17

241 283

(unit: MB)

Sales Revenue Net Profit

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Slight decline in sales revenue (-0.6%) as a result of -1.5% drop in sales volume

Declined sales volume due to

• Sombre mood after Oct 2016 leading to slower growth
• Contracting NARTD market
• Severe floods in Q1’18
• Continual rain throughout summer and rest of the year

But improved selling price in specific packs/channels leading to slower rate of revenue decline compared to volume drop. (unit: MB)

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Lower assets and liabilities; Higher Equity

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Total Assets

2,235 1,944 2016 2017

Total Liabilities

2,473 2,665 2016 2017

Total Equity

Total assets decreased by 100MB (-2%) in 2017 due mainly to lower cash (used for early repayment of long-term loans), shorter inventory holding day, and decreased A/R- Excise Tax Dept. Total liabilities declined by 291MB (-13%) vs. 2016 because of no significant loan drawdown in 2017, while continuing loan repayment. Total shareholders’ equity rose by 192 MB (+8%) in 2017 from increased operating profit and land revaluation (+65MB) during the year.

4,708 4,609 2016 2017

Highest Record of Net Profit at 283 MB (+18%). % NP rose from 4.2% to 5.0%.

Due to: Improved GP margin from 31.0% to 32.4%

• Less discount to customers and pack/channel mix

management

• lower production cost from increased own production

capability (i.e. full-year operation of 3rd PET line) Slight increase in Distribution & Admin. expenses (+14MB

• r +1% vs. PY)
• Higher administrative expenses from increased benefits for

employees and SAP improvement project

• But Lower distribution expenses from
• declined transportation cost due to pre-sell implementation
• lower marketing spending.

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Y16 Y17

241 283

4.2% 5.0%

(unit: MB)

Key Financial Ratio

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Profitability - Efficiency Ratio

Current ratio Quick ratio 1.05 0.93 0.70 0.62 Y16 Y17 D/E ratio IBD/E ratio

Significant decrease in interest-bearing debts (both short and long terms) led to lower D/E and IBD/E ratio in 2017

Financial Policy Ratio Liquidity Ratio

0.44 0.30 0.90 0.73 Y16 Y17

Current and Quick ratio was slightly lower as a result of less cash which was used for early repayment of long-term loans. Increased net profit led to higher return on assets and equity.

ROE ROA

6.3 7.3 10.0 11.0 Y16 Y17

Higher return to shareholders

Dividend (B/Share) 0.25 0.65 1.00 Dividend Payout 49% 54% 70%

Return on Equity Dividend Yield

* Based on the dividend proposed from 2017 performance and stock price as of 23Apr18

*

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2017 Key Milestones

Demand Fulfillment

• Can line upgrade
• Halal certification

(Sep’17) Demand Creation

• New Products: MM

Pulpy (Mandarin), MM VitaKids, Fuze Tea (and Zico in early 2018) Others

• SAP & business

process improvement (goes live in Mar’18)

• Corporate Carbon

Footprint (Hatyai- 2016, Poonpin- Sep’17)

• More SKUs certified

for Product Carbon Footprint

• New sugar tax

regulations (Sep’17) Market Execution

• Pre-sell roll out

completed by Dec 2017

• Telesales launched

in Feb 2017 (now 4 routes)

xxx g

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Forward Looking

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SALEs VOL: 52 MUC 62.5 MUC NARTD SHARE: 23% 26%

2017

+6.3% p.a. +3 pts.

2020

SPARKLING SHARE: 84% 85%

+1 pts.

SALEs REVENUE: 5,671 MB 7,000 MB

+6% p.a. +6.8% p.a.

“Continually increasing profitable, sustainable unit case sales of our products by satisfying new and existing consumers through excellent service to and with our customers at an increasing return”

Thank you Q&A