Analyst Meeting SAPPE PUBLIC COMPANY LIMITED, THAILAND Full-Year 2016 & 2017 Outlook 28 March 2017
AGENDA: 1. Financial Review Q4/2016 2. Business Overview 3. 2017 Outlook 2
Financial Review Q4/2016 3
2016 Key Highlights • Top-line revenues: – Majority of sales & marketing resources in Q3-Q4/2016 were reallocated from domestic to international markets. – International business contributed +14% YoY growth. – Domestic markets dropped by -8% YoY, mainly due to National Mourning period in Q4/2016. • Investments and expenses: – Investments in capacity expansion & cost-saving projects, implemented since end-2015, drove %COGS down by 4.3 pts. – 40% share purchase of All Coco Group as a long-term prospect – 51% share selling of Sappe Indonesia on temporary basis 4
Full-Year Revenue Breakdown 5
Cost of Goods Sold by Quarters ▪ SAPPE’s %COGS continued to decrease due to the new production line and cost saving projects during Q4 -2015 to Q1-2016. 6
Gross Profit Margin (THB mm) 7
Selling Expenses (THB mm) SAPPE’s Selling Expenses in first half were significantly increased but remain in the budget through out the year ▪ Domestic sales and marketing campaigns for summer. ▪ Regional campaigns for international business for Q1-Q4/2016. 8
Admin Expenses (THB mm) Administration Expenses 2016 was up YoY by 0.6 percentage points, driven by: 1. Organic growth of normal expenses, such as employee salaries 2. Investment in infrastructure to support its international business growth, including manpower, IT system and a new office of a subsidiary. 9
Net Profit Margin (THB mm) 10
Net Profit Margin of the Parent Company (THB mm) ▪ The net profit of the parent company was slightly higher than consolidated net profit due to net loss in Sappe Indonesia. 11
Asset Components (THBmm) 12
Liabilities Components IBD/E 1.2x 1.0x Nil Nil Nil (THBmm) 13
Capital Expenditure (THBmm) The company had no mega capital expenditure project plan in year 2016 only a small cost saving projects through the year and ▪ a preventive maintenance expenses. 14
Business Overview 15
Strong Portfolio Production Categories Description Key Brands Sale Structure No. 1 market share in value in Thailand (women segment) 2016 Total Sales : THB 2,712.5 MB No. 1 coffee volume in Thailand RTD Coconut Water 16
Geographical Overview of Our Market Sale structure by geography Europe 2016 Total Sales : THB 2,712.5 MB Indonesia Asia “We derive our sale from more than 70 countries around the world” 17
Innovative Milestones 2011 2014 2006 2015 2004 2017 2001
2017 Outlook 19
Sappe’s Long-Term Strategy - In-house product/category development - Potential product/brand acquisition New Product; Existing Network New Product; New Network - Regional campaign for Mogu Mogu - JV for distribution coverage - Effective market penetration in a new country - Upgrade strategic countries - Open new markets Existing Product; Existing Network Existing Product; New Network 20
Sappe’s Action Plans New lineup for domestic markets Go-to-market strategy • 3 TT market penetrations in Thailand, China & Indonesia
TT Market Penetrations • Newly appointed TT distributor with far more outlet coverage • Full-year domestic growth target at 5% • Investments in both markets, particularly to boost up TT coverage, via our newly set-up subsidiary • Full-year China growth target at 20% • Coverage expansion in local MT – a developed version of TT format across the country • Full-year Indonesia growth target at 6%
Mogu Mogu To Go Key Concept: – Affordable price point, at a smaller size of 180 ml., for TT market only – Different flavors to avoid cannibalization – Currently limited version to test the concepts in selective country
All Coco Group: Business Update International Distribution : – Working on FDAs in selective countries Industrial Products / Bulk Sale : – Currently the fastest-growing segment – Bulk coconut water sold to global players & bulk coconut flesh in Makro, Thailand International Franchise : – Under discussion with a number of master franchise prospects, with the target of at least 1 Signature Café within 2017
Exhibitions GULFOOD, DUBAI 125 leads
Exhibitions (cont’d) FOODEX, JAPAN 71 leads
Exhibitions (cont’d) EXPOWEST, USA 37 leads
Signature Café Concept
Q&A
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