Sappe Public Company Ltd · SET:SAPPE
Sappe Public — FY2015 Earnings Presentation
35 slides from Sappe Public's earnings presentation, February 2016
Slide 1: Presentation FY 2015
Presentation FY 2015 SAPPE PUBLIC COMPANY LIMITED, THAILAND
Slide 2: Agenda
AGENDA: 1. 2015 Key Challenges 2. 2015 Activities & Achievements 3. Financial Review FY 2015 4. 2016 Forward Looking
Slide 3: 2015 Key Challenges
_——ii 2015 KEY CHALLENGES
Slide 4: 2015 Key Challenges
2015 KEY CHALLENGES A tough year for Sappe PCL.’s transition… - China: Changing distributors & TT Coverage - Indonesia: Weak Rupiah and unfavorable economy - Domestic execution: Restage Beauti Drink, Product visibility - Cost Saving Project: • Setup new production line • Reduce plastic usage in pack
Slide 5: 2015 Activities & Achievement
2015 ACTIVITIES & ACHIEVEMENT
Slide 6: 2015 Activities & Achievements
2015 Activities & Achievements Q1 Q2 Q3 Q4 Transition for cost saving project China New Line Commercialize Holding Thailand
Slide 7: 2015 Activities & Achievements
2015 Activities & Achievements No.1 share leaderships* in domestic market 51% 33% 27% * Nielsen Company’s data, December 2015
Slide 8: 2015 Activities & Achievements
2015 Activities & Achievements 51% Sales Value Y2014-Y2015
Slide 9: 2015 Activities & Achievements
2015 Activities & Achievements
Slide 10: 2015 Activities & Achievements
2015 Activities & Achievements
Slide 11: 2015 Activities & Achievements: New Products
2015 Activities & Achievements - Successfully NPDs that delight consumers in different markets i.e. • Mogu Mogu Melon, Pink Guava • Sappe Aloe Vera Pineapple • Juice Me
Slide 12: Financial Review FY 2015
_——ii FINANCIAL REVIEW FY 2015
Slide 13: Strong Portfolio
Strong Portfolio Production Categories Description Key Brands Sale Structure No. 1 market share in value in Thailand (women segment) No. 1 coffee volume in Thailand FY : 2015 THB 2,582.9mm 13
Slide 14: Geographical Overview of Our Market
Geographical Overview of Our Market Sale structure by geography Europe Indonesia FY : 2015 Asia THB 2,582.9mm “We derive our sale from more than 60 countries around the world” 14
Slide 15: Full-Year Revenue Breakdown
Full-Year Revenue Breakdown 1,802.3 2,381.7 2,816.8 2,582.9 Remark: 2015 accounting adjustment of Baht 69 and 71 million were sales and cost of manufacturing during new machine testing. 15 According to the accounting standard, net proceeds received of testing cost were recognized as cost of asset
Slide 16: Cost of Goods Sold by Quarters
Cost of Goods Sold by Quarters SAPPE’s COGS Q4’2015 is higher than Q4’2014. 16
Slide 17: Gross Profit Margin
Gross Profit Margin (THB mm) Gross profit margin was at 39.5% in line with 2014. 17
Slide 18: Selling Expenses
Selling Expenses (THB mm) SAPPE’s Selling Expenses were dropped from 2014 at Baht 474.2 million to 462.5 million in 2015 but rose as a percentage to total revenue from 16.6% to 17.6% in 2015. 18
Slide 19: Admin Expenses
Admin Expenses (THB mm) Administration Expenses was up YoY by 1.6 percentage points, driven by 1. Total Revenue shrunk by -8.3% YoY. 2. The company invested more in infrastructure to support its prospect of global business, including manpower, systems and new office of a subsidiary. 19
Slide 20: Net Profit Margin
20 Net Profit Margin (THB mm) 13.0% 2012 2013 2014 2015 mmm Net Profit —t Net Profit Margin 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Slide 21: Net Profit Owners of the Company
Net Profit Owners of the Company (THB mm) 21
Slide 22: Asset Components
Asset Components 2500.0 2,275 2,081 2000.0 1,341 1500.0 1,168 1000.0 500.0 0.0 2012 2013 2014 2015 ™ Cash and current Investment ™ Account receivable @ Other recievable m Inventory @ Plant property and equipment m Intangible asset @ Other asset 22
Slide 23: Liabilities Components
Liabilities Components IBD/E 1.0x 1.2x Nil Nil (THBmm) 23
Slide 24: Capital Expenditure
Capital Expenditure (THB mm) Capital Expenditure in 2012-2014 were related to Klong 13 factory – to boost capacity & efficiency. CAPEX THB 551.8mm in 2015 included new production line and land acquisition next to the factory. 24
Slide 25: 2016 Forward Looking
2016 Forward Looking
Slide 26: 2016 Forward Looking
_——ii 2016 FORWARD LOOKING
Slide 27: 2016 Forward Looking: Domestic Market
2016 Forward Looking : Domestic Market
Slide 28: 2016 Forward Looking: Domestic Market
2016 Forward Looking : Domestic Market
Slide 29: 2016 Forward Looking: Domestic Market
2016 Forward Looking : Domestic Market
Slide 30: 2016 Forward Looking: Domestic Market
2016 Forward Looking : Domestic Market
Slide 31: 2016 Forward Looking: International Market
2016 Forward Looking : International Market International Market: Mogu Mogu - Market expansion: Penetration game with wise investments (Middle East 40% vs. YA, America 38% vs. YA, Strategic Countries) - Regional campaign and marketing plans
Slide 32: 2016 Forward Looking: International Market
2016 Forward Looking : International Market International Market: Aloe Vera Snowball the trends of Aloe Vera drink from USA & EU to Asian market
Slide 33: 2016 Forward Looking: International Market
2016 Forward Looking : International Market China Market: Long-term strategic market - New Label with spyglass campaign - Under discussion with other potential partners
Slide 34: 2016 Forward Looking: Our Production
2016 Forward Looking : Our Production Cost saving effects - New capacity increase by 30%, with highly efficient processes - Less plastic usage in packaging material by 10% - Less admin & transportation costs of Bangchan factory
Slide 35: Q&A
Q&A SALES Designed to Innovate