Sunmoon Food Co. Ltd. · SGX:AAJ
Sunmoon Food — Investor Presentation (November 2016)
36 slides from Sunmoon Food's investor presentation, Nov 17, 2016
Slide 1: Corporate Presentation 17 November 2016
Corporate Presentation 17 November 2016
Slide 2: Content
Content 1. About Us 2. Our Business Model • Asset-light • The SunMoon Equation – ‘N x G x P’ 3. Competitive Strengths 4. Financial Highlights 5. Corporate Developments 6. Next Steps 2
Slide 3: About Us
1. About Us SunMoon is a global distributor and marketer of nutritious fresh fruits, vegetables and products, delivering to the health-conscious consumer in the most convenient way. Since 2015 – shifted our focus on the ‘Fresh Division’, operating in fruit trading, wholesale distribution, and retail
Slide 4: Our Business Model
2. Our Business Model ee”
Slide 5: Asset-light Model
2. Asset-light Model • Sourcing fruits from accredited farmers and packers instead of ownership of assets • To be powered with ERP system NetSuite from Dec 2016, enabling SunMoon to offer: • An online trading platform • Real-time data on prices and details of product range, accessible by partners an
Slide 6: The SunMoon Equation
2. The SunMoon Equation Our Business Model Working Capital ( N G P ( NETWORK x GEOGRAPHY x PRODUCTS Growing our Making inroads to new Work collaboratively with a procurement and territories, with a view of global network of suppliers to sales network expanding networks develop innovative, natural, s
Slide 7: Network
2. Network NETWORK x GEOGRAPHY x PRODUCTS As the Group aims to be a key global player in the rise in consumer spending, specialising in fruit-related and fresh products, an expansion of the current Corporate network of wholesale and modern trade Online retailers Consumer Supermarket channels will be
Slide 8: Network – Our Clients
2. Network – Our Clients Deepening our presence worldwide Online/ Airlines / Supermarket/Convenience stores Wholesale Food Services SEA/ Greater China Singapore Middle East/ India United States Australia 8
Slide 9: Network – Our Suppliers
2. Network – Our Suppliers A diverse global network of quality suppliers to bring you only the finest China Apples, Citrus, Grapes, Lychees, Melons, Pears United States South Korea Apples, Berries Berries Citrus, Grapes Taiwan Mexico Pineapples Berries Vietnam Peru Dragon Fruits Grapes Thailand Coco
Slide 10: Geography
2. Geography NETWORK x GEOGRAPHY x PRODUCTS Entering new markets, expanding our network. Via our geographical expansion, we aim to bring quality products to new countries to reach out to new consumers, and secure the mindshare of the new sophisticated consumers. 10
Slide 11: Geography
2. Geography Expanding SunMoon’s geographical reach with over 11,000 POS* globally Europe Coming soon! United States China 77 POS 750 POS Philippines 200 POS Singapore 180 POS Thailand India & Middle East 200 POS 2,220 POS Malaysia 240 POS Indonesia 10,000 POS *POS – Points of sales 11
Slide 12: Our Products
2. Our Products NETWORK x GEOGRAPHY x PRODUCTS • Offering over 100 product types, including fresh fruits, vegetables and consumer products • Under SunMoon and EcoFresh brands • Continuous innovation to introduce quality, nutritious products that seek to delight consumers Fresh Fruits Consumer Produc
Slide 13: Our Products – From Farm to Fork
2. Our Products – From Farm to Fork The Mark of Assurance Fruits from certified plantations are selected according to the ‘SunMoon Quality Assurance’ standard, a critical checklist of freshness, quality, safety and traceability as demanded by our discerning customers; a reputation also backed up by
Slide 14: Our Competitive Strengths
3. Our Competitive Strengths 14
Slide 15: Competitive Strengths
3. Competitive Strengths 1. Global reach • Network of over 11,000 point of sales across 9 markets with a presence in 9 geographies 2. Recognised brand • Aspiring to be a global lifestyle and consumer brand • SunMoon brand associated with quality, nutritious products • Our products come with the SunM
Slide 16: Competitive Strengths (cont.)
3. Competitive Strengths (cont.) 3. Wide range of products • Suite of over 100 products under SunMoon and EcoFresh brands, including fresh and packaged fruits and healthy snacks • Helps reduce impact of seasonality, offering includes: i. tropical fruits, which are available all year round, and ii. p
Slide 17: Competitive Strengths (cont.)
3. Competitive Strengths (cont.) 5. Asset-light model • Free up cash flow to focus on growing the business 6. Cash basis or short credit terms • (N x G x P) Working Capital • Cash conversion cycle of 7 times 30-45 days 17
Slide 18: Financial Highlights
4. Financial Highlights 18
Slide 19: Financial Highlights
4. Financial Highlights FY2015 FY2014 FY2013 FY2012 FY2011 Turnover (S$ millions)* 14.09 15.86 11.39 13.60 14.58 (Loss)/profit before Income Tax (S$ millions)* (4.15) (2.83) 9.70 (2.42) (4.36) Shareholders' funds (S$ millions) 11.19 12.67 14.33 (21.20) (17.60) Net Tangible Assets per Share (Cents) 3
Slide 20: Improving Financial Position
4. Improving Financial Position • Paring debt from S$49.3m in 2008 to S$0.6m in 2015 • From negative equity of S$19.8m in 2008 to positive equity of S$11.2m in 2015 Debt vs Equity (S$ ‘000) Bank loan Loan from investor Net equity 25,000 20,000 15,000 10,000 5,000 - (5,000) (10,000) (15,000) (20,000)
Slide 21: Profit & Loss – 3Q16
4. Profit & Loss – 3Q16 (S$ ’000) 3Q2016 3Q2015 % change Revenue 7,989 5,854 36% Gross profit 90 444 (80%) (Loss)/Profit for the period (1,581) 222 n.m. EBITDA (1,533) 419 n.m. Gross margin (%) 1.1 7.6 (6.5) ppt • Revenue increased by 36% on lifting of restriction of China fresh fruits by the Indone
Slide 22: Profit & Loss – YTD16
4. Profit & Loss – YTD16 (S$ ’000) YTD2016 YTD2015 % change Revenue 15,855 11,969 32% Gross profit 722 935 (23%) (Loss)/Profit for the period (3,975) 362 n.m. EBITDA (3,667) 1,263 n.m. Gross margin (%) 4.6 7.8 (3.2) ppt • Similarly YTD16, Revenue increased by 32% on lifting of restriction of China f
Slide 23: Financial Position – 3Q16
4. Financial Position – 3Q16 As at 30 September 2016 (S$ ’000) Non-current assets 214 Current assets 17,029 Current liabilities 10,347 Shareholders’ Equity 6,896 Net asset value (Cent) 2.16 23
Slide 24: Corporate Developments
5. Corporate Developments 24
Slide 25: Potential Investment by Yiguo
5. Potential Investment by Yiguo 7 Oct 2016: Signed binding term sheet with respect to intended investment by Shanghai YIGUO E-Commerce Co. Ltd (Yiguo). • Intended placement of 333.3 million new shares with free warrants to Yiguo on the basis of one warrant for every two placement shares subscribed
Slide 26: Potential Investment by Yiguo (cont.)
5. Potential Investment by Yiguo (cont.) About Yiguo • Yiguo’s investors include KKR and Alibaba • Yiguo is a top online fresh food retailer in the PRC carrying over 3,200 products and a base of over 5 million registered users • Yiguo has an extensive geographic presence within the PRC covering 18 p
Slide 27: Potential Investment by Yiguo (cont.)
5. Potential Investment by Yiguo (cont.) Rationale • Injection of new capital to enable SunMoon to fast track expansion plans globally • Leverage on Yiguo’s contacts, infrastructure and logistics strengths in China to further B2B channels and B2C ambitions, potentially resulting in higher sales and
Slide 28: Stake Acquisition in Harvest Season
5. Stake Acquisition in Harvest Season About Harvest Season • Fast-growing wholesale and retail fruit business in China • Currently has six retail stores in China, and targets to expand its presence both physically and digitally in the near future • Runs an online business that supplements physical
Slide 29: Stake Acquisition in Harvest Season (cont.)
5. Stake Acquisition in Harvest Season (cont.) 10 Feb 2016: SPA to acquire 12% stake in Harvest Season SG. Consideration • SunMoon to convert accounts receivable of S$1.4 million into a 12% stake in Harvest Season Call Option • Owner of the company is able to redeem the 12% stake in Harvest Season f
Slide 30: Sale of Dehydrated Business
5. Sale of Dehydrated Business 11 November 2016: Entered into binding conditional term sheet with Global Food Ingredients Pte Ltd for sale of its dehydrated business and shares in United Agro Produce Pte Ltd for S$4.1 million. • In line with shift to asset-light consumer-centric and brand-focused bu
Slide 31: Annual Program Buy
5. Annual Program Buy April 2016: Launch of Annual Program Buy, a new programme where the company aims to enter into long-term supply contracts with existing and new clients. March 2016: Sales orders with two existing clients: Lulu Supermarket and Carrefour for a 52-week period in relation to propos
Slide 32: SazzyPets SunMoon Products for Kids
5. SazzyPets SunMoon Products for Kids 15 May 2014: Entered into a 3-year licensing agreement with SLS Atelier, a media company owned by First Alverstone Capital Ltd (FACL) to use SazzyPets on the Group’s Fruit Cups, Fruit Crisps and Fruit Juices. • SazzyPets is an animated series shown on Amazon Pr
Slide 33: Licensing agreement with GLOH Fresh
5. Licensing agreement with GLOH Fresh 15 May 2014: Granted GLOH Fresh, which is owned by FACL, a 3-year master global licence to operate the online e-commerce business SunMoonDirect. 33
Slide 34: Next Steps
6. Next Steps ee”
Slide 35: Deepening and Widening SunMoon
6. Deepening and Widening SunMoon New strategy: Green Shoots • The group is stepping up its marketing and sales efforts for its range of processed fruit products in Singapore, China, Indonesia and USA • The group will continue in efforts to grow the business via the ‘N x G x P’ model Management team
Slide 36: Contact
@SunMoonFood @SunMoonFood www.sunmoonfood.com WATERBROOKS CONSULTANTS PTE LTD Tel: +65 6100 2228 For more information, please contact: Contact: Ms Jacqueline Lim / Ms Angeline Cheong Mobile: +65 9695 9318 / +65 9666 0977 Email: [email protected] / [email protected] 36
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