Annual General Meeting 26 th April 2018 1
+6.2% Volume Growth (5-yr CAGR) Vol. Growth by Category (Unit: MUC) +/- Category (Y17 vs. Y16) Sparkling -1.7% Water +1.9% Still (excl. water) -2.1% Total -1.5% 53 52 50 47 42 39 2012 2013 2014 2015 2016 2017 +/- vs. PY +14% +10% +12% +5% +6% -1.5% 2
Key Financial Highlights Net Profit Sales Revenue 283 (unit: MB) (unit: MB) 241 Y17 Y16 3
Slight decline in sales revenue (-0.6%) as a result of -1.5% drop in sales volume Declined sales volume due to (unit: MB) • 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. 4
Lower assets and liabilities; Higher Equity Total Assets Total assets decreased by 100MB (-2%) in 2017 due mainly to lower cash (used for early 4,708 repayment of long-term loans), shorter inventory holding day, and decreased A/R- 4,609 Excise Tax Dept. 2016 2017 Total Liabilities Total liabilities declined by 291MB (-13%) vs. 2016 because of no significant loan 2,235 drawdown in 2017, while continuing loan repayment. 1,944 2016 2017 Total Equity 2,665 Total shareholders’ equity rose by 192 MB (+8%) in 2017 from increased operating profit and land revaluation (+65MB) during 2,473 the year. 2016 2017 5
Highest Record of Net Profit at 283 MB (+18%). % NP rose from 4.2% to 5.0%. Due to: (unit: MB) 283 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 5.0% capability (i.e. full-year operation of 3 rd PET line) 241 Slight increase in Distribution & Admin. expenses (+14MB or +1% vs. PY) • Higher administrative expenses from increased benefits for 4.2% employees and SAP improvement project • But Lower distribution expenses from - declined transportation cost due to pre-sell implementation Y17 Y16 - lower marketing spending . 6
Key Financial Ratio Liquidity Ratio 1.05 Current ratio 0.93 Current and Quick ratio was slightly lower as a 0.70 Quick ratio result of less cash which was used for early 0.62 repayment of long-term loans. Y16 Y17 Financial Policy Ratio 0.90 D/E ratio 0.73 Significant decrease in interest-bearing debts 0.44 IBD/E ratio (both short and long terms) led to lower D/E 0.30 and IBD/E ratio in 2017 Y16 Y17 Profitability - Efficiency Ratio 11.0 ROE 10.0 Increased net profit led to higher return on assets 7.3 and equity. ROA 6.3 Y16 Y17 7
Higher return to shareholders Return on Equity Dividend Yield * Dividend (B/Share) 0.25 0.65 1.00 Dividend Payout 49% 54% 70% * Based on the dividend proposed from 2017 performance and stock price as of 23Apr18 8
2017 Key Milestones Demand Creation Market Execution Others Demand Fulfillment • Pre-sell roll out • SAP & business • Can line upgrade • New Products: MM process improvement Pulpy (Mandarin), completed by Dec • Halal certification MM VitaKids, Fuze 2017 (goes live in Mar’18) (Sep’17) Tea (and Zico in • Telesales launched • Corporate Carbon early 2018) Footprint (Hatyai- in Feb 2017 (now 4 2016, Poonpin- routes) Sep’17) • More SKUs certified for Product Carbon Footprint • New sugar tax regulations (Sep’17) xxx g 9
Forward Looking +6% p.a. +6.8% p.a. 7,000 MB SALEs REVENUE: 5,671 MB +6.3% p.a. 62.5 MUC SALEs VOL: 52 MUC +3 pts. NARTD SHARE: 23% 26% +1 pts. 85% SPARKLING SHARE: 84% 2020 2017 “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” 10
Thank you Q&A
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