Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — 1H2004 Earnings Presentation
13 slides from Fraser & Neave's earnings presentation, 2004
Slide 1: Review by Operation: Publishing & Printing
Review by Operation…. Publishing & Printing Mr Lai Seck Khui
Slide 2: Financial Results 1H2004
Financial Results 1H2004 $ million 1H2004 1H2003 +/- Revenue 242.7 250.6 -3.2 PBIT* 14.8 9.2 +60.9 PAT* 11.3 8.2 +37.8 * before exceptional items
Slide 3: Financial Results 1H2004
Financial Results 1H2004 Overall sales lower by 3.2%, affected by: y Restructuring of non-performing operations. y Rescheduled launch of new publishing works. y Lower sales of library reference in US. PBIT (before EI) and PAT improved by 60.9% and 37.8% respectively compared to last year.
Slide 4: Operational Review: Printing
Operational Review Printing y Sales lower by 2.1% y This is due mainly to the winding- down of printing operations in TPL Printers in UK. y Plants in Malaysia and China are performing well.
Slide 5: Operational Review: Printing
Operational Review Printing y Argyle Times Graphics is affected by lower demand for commercial print work. The plant has succeeded in acquiring printing contracts from magazine publishers to balance the workload.
Slide 6: Operational Review: Printing
Operational Review Printing y The Singapore operation had been challenged by lower advertising spending. The outlook should improve with a recovery in business spending. y Everbest Printing in Guangdong continued to enjoy strong export sales.
Slide 7: Operational Review: Printing
Operational Review Printing y On-demand printing continued to expand steadily, contributing positively to profits. y Acquired an additional 10% share in Shenyang Times Packaging Printing Co Ltd to gain majority control.
Slide 8: Operational Review: Publishing
Operational Review Publishing y Sales lower by 14.1% y Fewer published works launched in 1st half compared to last year. Major launches rescheduled to 2nd Half of the year. y US operation affected by lower spending by state and school libraries. y Educational and Business Information Publishing ha
Slide 9: Operational Review: Retail & Distribution
Operational Review Retail & Distribution y Sales up by 3.4% y Higher sales from Academic Book Distribution in Japan. y Australian distribution operations affected by price competition and weaker consumer spending.
Slide 10: Operational Review: Retail & Distribution
Operational Review Retail & Distribution y The loss in the bookshops has been reduced after rationalisation of the operation. However, consumer spending at the bookshops remains weak.
Slide 11: Market Outlook
Market Outlook Markets in China, Japan, Malaysia and Singapore will remain strong for printing and publishing. However, US and Europe will continue to be challenging markets for library sales and partwork launches.
Slide 12: Going Forward
Going Forward Greater emphasis on expanding TPL's presence in printing and publishing activities in China. Exploring inroads into China in the distribution and retail area. Embarked on a renewal and upgrading programme for the printing plants to improve quality and increase efficiency and produc
Slide 13: Going Forward
Going Forward Continue with rationalisation of all operations to improve economies of scale through selective acquisition. Complete the restructuring programme on the disposal of non-core assets to lighten the asset base of the company. Re-channel assets to higher yield growth areas.