Investor Report 2019 Earning Result 2 nd March 2020 AGENDA ITEM 01 - PowerPoint PPT Presentation

Investor Report 2019 Earning Result 2 nd March 2020

AGENDA ITEM 01 FY2019 Performance AGENDA ITEM 02 Strategy & Growth AGENDA ITEM 03 Appendix 2

01 AGENDA ITEM 01 FY2019 Performance 3

01 FY2019 Results Active Outlet/Customer Remains strong with Unit cases (Domestic Sale) +6% +10% No.1 Market share From 41,481 to Market 44,043 Of NARTD* result 25% 58 million unit cases (MUC) Market outlets/customers 6 MUC from Made-to-Order Sale Utilization Rate Distribution truck Route to Market +12ppt Operational Average Utilization From 54% Delivery Success rate rate from 65% to70 % move to 66% of a world class excellence +5ppt in 2019 standard at 99% Net Profit Margin Net profit Sales revenue +19% +77% Net Profit Margin Net results +2.1ppt From 4.4% to 6.5% THB 6,776 million THB 441 million 4 * Non - Alcoholic Ready to Drink (NARTD)

01 FY2019 Financial Performance Sales Contribution THB(million) FY2018 FY 2019 %(YOY) 1% 8% Domestic sale Volume (MUC) 53 58 9% Sparkling 4% 8%4% PET Made-to-order sale (MUC) 0.3 5.8 1900% Water Can Total sale (MUC) 53 64 20% 91% Glass Still 84% PROFIT AND LOSS STATEMENT Fountain Revenue from Sales 5,704.0 6,775.5 19% Key deliverable Cost of Goods Sold 3,780.0 4,183.7 11% Gross Profit 1,924.0 2,591.8 35%  Domestic sale Volume increased 10% as the favorable weather and the EBITDA 568.7 781.0 37% implementation of promotional activities and marketing campaigns. Made- to – EBIT 281.4 484.5 72% order sale volume to business partner (within Coca cola system)  Revenue from Sales grew at 19% from prices adjustments and volume growth Interest expenses 30.4 24.3 -20% while Cost of Goods Sold(COGS) had increased by Baht 403.65 million or 10.68% Tax 20.6 36.3 77% , the growth rate of COGS is lower than the volume’s, partly as the result of a Profit for the year 249.1 440.7 77% decrease in sugar price and usage, as well as savings from economy of scale Gross profit margin 34% 38%  Distribution costs have increased by Baht 235.36 million or 19.94% and EBITDA margin 10% 12% administrative expenses have increased by 229.29 million or 49.61% mainly due to Net profit margin 4.4% 6.5% Human resource related items 5 Financial statement I FY 19 Result I 2 March 2020

01 Financial Highlights Revenue from Sales (THB million) SG&A (THB million ) One off impact of provision for retirement benefits in accordance with the changes in Highest revenue growth (+ 19%yoy) in the past 5 years, with CAGR of 5%. Labor Protection Act and ESOP program drove SG&A to Sale to 31%. 6,776 31.1% 4,000 28.8% 35.0% 5,704 5,704 5,671 26.3% 27.1% 26.7% 5,401 5,205 3,500 30.0% 26.7% 3,000 2,107 25.0% 2,500 1,643 1,502 1,515 1,466 20.0% 1,390 2,000 15.0% 1,500 10.0% 1,000 5.0% 500 0.0% - 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 SG&A SG&A to Sale GPM & EBIT Margin Net Profit & Net Profit Margin (NPM) Accumulated increase in margin after the improvement of production line and Accumulated increase in margin after the improvement of production line and digitalization of sale services in 2016. digitalization of sale services in 2016. 38.3% 40.0% 1000 8.0% Net Profit NPM 39.0% 950 38.0% 900 7.0% 6.5% 37.0% 33.7% 850 36.0% 800 5.0% 32.4% 35.0% 6.0% 750 31.0% 11.0% 4.4% 34.0% 4.2% 700 GPM 33.0% 650 5.0% 32.0% 28.6% 441 600 31.0% 28.4% 6.5% 550 30.0% 4.0% 500 29.0% 4.9% 2.2% 450 283 28.0% 4.2% 249 3.0% 400 1.9% 4.3% 27.0% 6.0% 350 241 26.0% 300 2.0% 25.0% Operating Profit 250 2.2% 24.0% 1.4% 115 200 101 23.0% 1.0% Margin 150 22.0% 100 21.0% 50 0.0% 20.0% 1.0% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 6 Financial statement I FY 19 Result I 2 March 2020

01 FY2019 Financial Performance Balance sheet summary- Assets (THB million) Balance sheet summary- Liabilities & Equities (THB million) Decreasing of Long-Term loans from 2016 as the Principal repayment. PP&E account for 70% of total assets, while Account Receivable account around 10% Equity Non Current Liabilities Current Liabilities Current Assets Non-Current assets 1,061 1,083 990 1,008 1,005 931 962 954 1,111 1,103 3,729 1,227 3,647 3,791 3,310 3,690 2,109 744 2,915 2,665 2,712 2,473 2,350 1,530 1,268 1,156 1,061 919 967 1,178 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Cash flows (THB million) CAPEX Interim dividend payment for THB 239 million and Long – term loan Principal Major investments in new production lines are expected no earlier than 2020. Repayment for THB 91.14 million were the main transactions of financing cash flow Distribution Production Warehouse expansion (50MB, in process) • 3 rd Injection machine (130MB, Q4’18) Market • Cold drink equipment investment Can Line upgrade with 30% additional (73MB) capacity (35MB, start Q4’19) • Water Line upgrade (23MB, in process) Ongoing investment in SAP Other • Clean energy -solar rooftop (PP- Feb’19) 7 Financial statement I FY 19 Result I 2 March 2020

01 Key Financial Ratios ROIC & ROE Activity Ratios Average Sales period decrease from 34 days to 26 days , as higher Technology in Production Both ROIC & ROE increased more than 2ppts & Distribution lines were employed 16% 2014 2015 2016 2017 2018 2019 14% 11% 10% 10% 9% 8% 1.4 8% Total Asset Turnover 1.5 1.4 1.2 1.2 1.2 8% 6% 5% 4% Average Sale Period (Days) 34.0 32.8 28.6 25.2 25.7 26.0 Average Collection Period (Days) 43.3 43.1 36.9 34.8 34.3 31.9 2014 2015 2016 2017 2018 2019 19.9 Average Payment Period (Days) 34.6 32.7 27.8 23.0 24.2 ROIC ROE Cash Cycle (Days) 42.7 43.2 37.7 37.0 35.8 38.0 Interest Coverage (x) D/E & IBD/E Ratios Interest Coverage strong at 21x of interest payment shows a strong organic growth and Debt/Equity and Interest bearing debts/Equity reduced significantly indicating a healthy healthy capital structure capital structure 21 1.21 0.90 0.90 0.75 0.73 10 9 0.68 0.57 7 0.37 0.44 5 4 0.30 0.31 0.22 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 D/E IBD/E Financial statement I FY 19 Result I 2 March 2020 8

01 HTC Shareholder dividend return 1.2 1H 2H 1 0.8 0.62 0.42 0.6 0.35 0.78 0.4 0.38 0.38 0.2 0.3 0.30 0.25 0 0 0 2014 2015 2016 2017 2018 2019 Dividend Policy : No less than 50 - 80 percent of the net income after tax , after legal reserves and consideration on cashflow, investment plan and necessaries in the future. 0.30 0.25 0.65 1.00 0.80 xx DPU (THB) EPS (THB) 0.58 0.51 1.21 1.42 1.25 2.21 Dividend payout (%) 52% 49% 54% 70% 64% xx% Financial statement I FY 19 Result I 2 March 2020 9

01 New HTC Products in 2019 1Q 2Q 3Q 4Q PET 450ml, 1.25L CAN 180ml., 325ml ALL Package CAN 325ml. PET 500ml, 1.5L Health trend ALL Channel FANTA GRAPE ALL Channel CAN 330ml. MINUTE MAID DOUBLE JUICE Reduced sugar SPRITE NO SUGAR ALL Channel SCHWEPPES Manao soda - Reduced sugar CAN 325ml CAN PET 450ml., 325ml 500ml, Innovation 7Eleven 1.25L, 1.5L Coke can ALL Channel Fanta Honey Lemon RASPBERRY 350ml PET Namthip Coke Can PET 1.95L Coke Can 330ml Packaging 245ml. (Less Sugar) Avenger Coke Can Summer graphic

02 AGENDA ITEM 02 Strategy & Growth 11

02 2020 Business Plan & Guidance Domestic Sale Volume 61 MUC (+5%) Revenue THB 7 Billion (+3%) Sustain 2019 gains in Net Profit Drive recruitment Develop a total Drive revenue growth Accelerate Quality Manage customer Diversification build sparkling habits beverage portfolio Execution & relationship & Drive in targeted occasions Availability IT • Digitalized sale services and operational • Organization changes to match with dynamic services : QR Code payment, environment • Restructuring of Manufacturing operations • Operational Improvements in distribution

02 2020 Business Plan & Guidance Guidance for 2020 gross and net profit Key Risk : COVID-19 impact Due to a balance of factors, gross profit margin (%) and net profit (MB) for Action Plan to COVID-19 FY2020 is currently budgeted to be stable compare with 2019. Therefore sustaining the significant increases realized in 2019.  Shift commercial focus toward in-home Adjustments to consumption Consumers  Shift marketing investments from Out of Home  Retail price increase implemented at the end of 2019 behavior Media to TV & Digital Advertising  Reduction in sugar usage due to reformulation in 2020  Realized efficiencies in the relocation of selected  Efficiencies in G&A and S&D costs Cost manufacturing operation from Hat Yai to Punpin plant Saving  Concentrate price increase of around 10% on all core products , excluding no sugar segment  Prioritize investment CAPEX Increase in sugar tax as per implementation of 2 nd phase Cash Flow  Management in September 2019  Increase in sweetener price (commodity price increase) 13

03 AGENDA ITEM 03 Appendix 14