FY2017 AGM 27 July 2017 CORPORATE OVERVIEW MILESTONES 3 VERTICAL - PowerPoint PPT Presentation

FY2017 AGM 27 July 2017

CORPORATE OVERVIEW

MILESTONES 3

VERTICAL INTEGRATION – ONE-STOP FOOD & CATERING SOLUTION FOOD FOOD FOOD SUPPLIES & OTHER CATERING RETAIL MANUFACTURING TRADING BUSINESSES 4

VERTICAL INTEGRATION – UPSTREAM ACQUISITIONS TS GROUP CT GROUP U-Market / Hi-Q Plastic Joo Chiat Kim Industries Choo • • • • Singapore’s largest Wide customer base Trades, processes and Manufacture and fishball manufacturer including cruises and retails meat-related supply F&B-related • ships items plastics , resins, moulds Strong brand: “ DoDo • • and plastic packaging Fishballs ” Direct sourcing through Manufactures and • global trading network retails famous premium To meet Neo Group’s • Wide global trading net of over 10 countries Joo Chiat Kim Choo plastics / packaging work – 24 countries • Dumplings needs: Group-wide cost • Fulfills 100% of Neo Produces 100% Neo • savings Group’s fruits and Global trading network Group’s deep -fried • vegetables needs: – over 20 countries 51% equity interest items Group-wide cost savings • Fulfills 100% of Neo • Manufacturing • 100% equity interest Group’s meat -related expertise to fully needs: Group-wide cost automate Group-wide savings processes • • 75% equity interest 55% equity interest 5

KITCHENS & FACILITIES Johor Bahru 6A Wan Lee Road Johor Bahru Built-in area: 5,000 sq ft Built-in area: 12,300 sq ft Built-in area: 54,000 sq ft • Hi-Q Plastic Industries • Gourmetz • Thong Siek Food, Malaysia 22 Senoko Way Built-in area: 100,000 sq ft 1 Enterprise Road • Thong Siek Food Built-in area: 72,000 sq ft • Neo Garden • Deli Hub • Best Catering • H-Cube Singapore • NKK • Niwa Sushi • I Do Flowers and Gifts • Choz Confectionery Kitchens In-Operation TS Manufacturing Facility Kaki Bukit 14 Joo Koon Circle 30B Quality Road CTVeg Group Warehouse Built-in area: 8,900 sq ft Estimated built-in area when Built-in area: 53,000 sq ft • Orange Clove • CT Group completed: 300,000 sq ft Hi-Q Plastic Industries Upcoming Facility OUR KITCHENS ACHIEVED ISO 22000 IN MARCH 2016 6

GLOBAL TRADING NETWORK 7

FY2017 FINANCIAL HIGHLIGHTS

FY2017 REVENUE HIGHLIGHTS REVENUE GROWS 29.2% Revenue ($’m) • 29.2% increase in topline to S$162.0m from 180 S$125.4m in FY2016 162.0 160 • Stronger performance across all four business 31.1 segments: 140 125.4 - Food Catering: 0.8% rise in revenue to 7.5 120 S$63.1m 48.0 - 100 Food Retail: 7.5% growth in revenue to 36.9 77.4 S$18.8m 80 - 18.8 17.5 Food Manufacturing: 29.9% rise in revenue 19.2 52.4 60 to S$48.0m 12.7 - Supplies & Trading: 317.6% surge in revenue 40 63.1 62.6 57.4 to S$31.1m 20 39.0 0 FY2014 14M 2015* FY2016 FY2017 Food Catering Food Retail Food Manufacturing Supplies & Trading * 14M 2015 refers to the 14-month financial period ended 31 March 2015 9

PROFIT HIGHLIGHTS FY2017 NET PROFIT Profit attributable to owners of the parent ($’m) 8 7.4 • FY2017 profit attributable to owners of the parent 7 6.4 (“ PATMI ”) decreased 46.2% to S$3.3m from 6.1 6 S$6.1m in FY2016 5 4 3.3 • 3 Bottomline impacted by one-off items: 2 - Absence of a one-off S$3.5 million gain from 1 bargain purchase on acquisition in FY2016 0 - FY2014 14M 2015* FY2016 FY2017 S$5.1 million loss on disposal of property (14 EBITDA for the financial year Senoko Way) ($’m) 16 • 14.0 Strong operating cash flows generated from 13.5 14 EBITDA 12 9.6 9.1 10 1.8 8 6 4 2 0 * 14M 2015 refers to the 14-month financial period ended 31 March 2015 FY2014 14M 2015* FY2016 FY2017 10

FINANCIAL HIGHLIGHTS FY2017 FY2016 S$’m (Audited) (Audited) Earnings Per Share (SGD cents) 2.24 4.18 Net cash from operating activities 6.7 2.9 Cash and cash equivalents at end of period 10.5 12.2 As at 31 Mar 2017 As at 31 Mar 2016 S$’m (Audited) (Audited) Equity attributable to owners of the parent 33.2 30.6 Net Asset Value Per Share (SGD cents) 22.73 20.97 Net Gearing (times) (1) 1.91 1.77 (1) Net Gearing is computed by dividing the net debts by equity attributable to owners of the parent 11

BUSINESS HIGHLIGHTS FOOD RETAIL

FOOD RETAIL – HIGHLIGHTS FOR FY2017 PERFORMANCE REVIEW Food Retail Revenue • Improved FY2017 Food Retail performance due ( S$’m ) mainly to consolidation of non-performing leases upon expiry and market initiatives and promotions 18.8 launched during the year • On track for turnaround: narrowed segment losses 17.5 of S$0.8m in FY2017 compared to a loss of S$1.4m in FY2016 16.8 - Testament of strategic review of Food Retail business model • Strengthen in-house delivery capabilities to capitalise on growing delivery demand and reduce 12M 2015* FY2016 FY2017 reliance on third-party delivery service providers *12-month annualised basis, from April 2014 to March 2015 13

EXTENSIVE RETAIL NETWORK* 14

FOOD RETAIL HIGHLIGHTS DEVELOPMENTS & STRATEGIES Review Of Business Keeping Customers Optimising Operations; Model Engaged Driving Efficiency • • • Store Locations/Concepts : Pursue Corporate Clients : Improved systems : Review merits of each store Build sustainable income Proprietary technology location, tailor concepts for stream (e.g. cash recycling machine unique demographics (e.g. partnership with /display top up/inventory SAFRA , banks, suppliers, etc) management/delivery tracking systems) • Review Strategies: • Pricing, product mix, retail Refresh offerings: • concepts – optimise margins Innovative new retail Streamlined menus: concepts in the pipeline & Reduced menu items for refresh menu items greater efficiency • Delivery: Boost topline growth • • Collaboration with strategic Greater Automation: partners: Reduce manpower reliance Cross sell and branding for higher visibility 15

BUSINESS HIGHLIGHTS FOOD CATERING

FOOD CATERING – HIGHLIGHTS FOR FY2017 GROWING BEYOND CATERING FY2017 Revenue Food Catering Revenue ( S$’m ) S$162.0 Million Others 63.1 62.6 0.7% 49.4 Food Manufacturing Food Catering 29.6% 38.9% Supplies & Food Trading 12M 2015* FY2016 FY2017 Retail 19.2% 11.6% *12-month annualised basis, from April 2014 to March 2015 17

FOOD CATERING HIGHLIGHTS DEVELOPMENTS & STRATEGIES Keeping Customers Building Sustainable Driving Productivity & Income Streams Efficiency Engaged • • • New Menus & Products : New Market Segment: Increased Automation: Healthier offerings, innovative New customised machineries to Gourmetz – elderly & products/services gradually fully-automate childcare segments processes • • Strong Brand Portfolio: Corporate Clients/Venue • Different brands catering to Embracing Technology: Partnerships : various market segments Proprietary systems for smarter Official/preferred caterer for business decisions 19 venues and organisations • Effective Marketing: • Strengthen brand & drive • Streamlined Operations: Institutional Catering: business growth Driving efficiency and accuracy Recurring income 18

BUSINESS HIGHLIGHTS FOOD MANUFACTURING

FOOD MANUFACTURING HIGHLIGHTS ON TRACK TO TURNAROUND Food Manufacturing Revenue* ( S$’m ) 48.0 36.9 • 29.9% increase in FY2017 segment revenue - S$48.0 million in FY2017 compared to S$36.9 million in FY2016* • On track for turnaround – S$600,000 operational FY2016* FY2017 profit excluding: - S$5.2m one-off loss on disposal of property Food Manufacturing Profit Before Tax - Other one-off loss and extraordinary items of ( S$’m ) S$1.2m comprised of plant and equipment Operational profit write-off, reinstatement costs and unrealised S$0.6 million Forex losses arising from intercompany balances 0.6m 0.3m 0.3m FY2016 FY2017 5.2m -4.2 * FY2016 consists 10 months revenue while FY2017 consists 12 months revenue -5.8 20

FOOD MANUFACTURING HIGHLIGHTS ON TRACK TO TURNAROUND TOPLINE BOTTOMLINE Continue to refine pricing strategies to optimise margins Expand overseas trading network to drive exports – higher margin NKK to source for surimi – substantial cost savings; economies of scale New 22 Senoko Way facility: Strengthen branding/marketing • Fully operational in May 2017 • Significant cost savings (e.g. cold room/rental, transportation) • Greater capacity & automation Develop new market segments (e.g. • Reap operational synergies hotel/corporates/restaurants, etc) • Cease rental fees for 14 Senoko Way from July 2017 21

BUSINESS HIGHLIGHTS SUPPLIES & TRADING

SUPPLIES & TRADING HIGHLIGHTS Supplies & Trading Revenue • Strong segment revenue growth due to: ( S$’m ) - U- Market’s maiden revenue contribution - 5-month maiden revenue from CT Group in FY2016 31.1 (acquisition completed Nov 2015) • CT Group continues to contribute positive top and bottomline 7.5 • Tap on TS Group’s wide customer base to cross-sell FY2016 FY2017 U-Market products • NKK as in house sourcing arm – self-reliance and cost savings through bulk purchase 23

GROWTH STRATEGIES