Thai Beverage Plc - SIAS · PDF fileSource: Company’s Consolidated Financial Statements...

Thai Beverage PlcThai Beverage PlcInvestor PresentationInvestor Presentation

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Investor Relations DepartmentInvestor Relations Department

By By

Investor Relations DepartmentInvestor Relations Department

February 2008NOV 2011

HighlightsHighlights

2

Key Investment Merits

� Largest beverage player in Thailand – one of the largest in Asia

� Strong Balance Sheet – Total D/E = 0.42 (30 Jun 11)

� Strong free cash flow – Baht 12,103 M (2010)

� Dividend policy: payout ratio not less than 50% of net profit – 83% (2010), Yield 5.7%

� Ranked in top 30 largest companies by market cap in SGX – S$ 6.9 B (31 Jul 2011)

3

Thai Beverage Plc.

Beers Non-alcoholic beverages

Spirits

Product Portfolio

Food & Restaurants

Thai white & brown spirits

Carbonated Green tea

Functional Drink

Scotch whisky & International

Spirits

Sports Drinks

RTD Green Tea

Restaurants

Energy Drinks

Japanese Buffet Chains and Fast-Food Kiosks

Lager Japanese Chilled and Frozen Food

Water & Soda

4

RTD Coffee

Sports Drinks

Total of 103 companies including production,

marketing and sales

Fruit Juices

Company Overview

October 1977 Acquisition of Sangsom Co.,Ltd. to produce Sangsom rum

May 1983 Successfully bid for concessions offered by the Government to build and operate 12 distilleries in Thailand

April 1986 Spirits business was merged with Sura Maharasadorn Group

July 1988 Acquisition of Red Bull Distillery (1988) Co.,Ltd.

May 1994 Bang Ban brewery commenced operationsMay 1994 Bang Ban brewery commenced operations

March 1995 Joint Venture between Carlsberg A/S and Chang Beer was launched in Thailand

July 1998 Acquisition of United Winery and Distillery Co.,Ltd

December 1998 Chang Beer became a market leader with approximately 54% market share of beer produced in Thailand

July 1999 Acquisition of Bang Ban brewery from joint venture with Carlsberg A/S

January 2000 Acquisition of 12 distilleries from the Government

October 2001 Kampaengphet brewery commenced operations

August 2002 Acquisition of Thai Alcohol Public Company Limited

October 2003 Thai Beverage was established as a holding company for all the subsidiaries

June 2004 Expansion of Kamphaengphet brewery commenced

May 2006 Thai Beverage successfully listed in the SGX-ST

5

Source: IPO Prospectus, ThaiBev’s SGX Announcements

May 2006 Thai Beverage successfully listed in the SGX-ST

October 2006 Acquisit ion of distillery assets from Sin Surang Karn Sura Co.,Ltd.

October 2006 Acquisition of PSUK, acquisit ion of BSHK

September 2007 Acquisition of United Products Company Limited and SPM Foods and Beverages Company Limited

January 2008 Acquisition of energy drink and ready-to-drink coffee assets from Wrangyer Beverage Company Limited

Sep-Nov 2008 Acquisition of 43.9% of Oishi in Sept; 89.9% following a tender offer in Nov, for a total cost of 6.24 billion Baht

Nov 2009 Acquisition of Yunnan Yulinquan Liquor in China

ThaiBev Today

� Thailand’s biggest beverage producers

� Three breweries, 18 distilleries in Thailand, 6 distilleries overseas, and 4 manufacturing facilities for non-alcohol beverages

� Largest market share in spirits and green tea

Performance 2010 Data

Sales 121,361 M Baht

Net Profit 10,612 M Baht

Sales Volume� Free cash flow(‘10)* 12,103 M Baht

Sales Volume

Beer 596 M Litres

Spirits 516 M Litres

Sales 2010 Net Profit 2010

* Free Cash Flow = Net Cash Provided by Operating Activities - CAPEX

109.9%

63.5%

6

Source: ThaiBev’s Consolidated Financial Statements 2009 (Thai GAAP)

-15.2%

3.6% 1.7%

Spirits Beer Non-Al Beverages Food

63.5%

27.8%

5.4% 3.4%

-0.1%

Spirits Beer Non-Al

Beverages

Food Elimination

Key Strengths

� Largest alcobev player in Thailand

� Extensive distribution network and logistics

� Strong brand recognition with diversified beverage product portfolio

� Strong balance sheets

� State-of the-art production facilities

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� Experienced and proven management team

Company Strategies

Maintain Market Leadership &Continue Brand Investment

Develop the international business

Expand in new profitable segments

Premiumise our product offer

Expand in new profitable segments

Develop the international business

8

Leverage infrastructure & distribution network

Reshape HR management systems

Reshape HR management systems

Leverage infrastructure &Distribution network

Distribution Network

ThaiBev

InternationalDomestic

93 branch offices

Hypermarts, Supermarkets,

Convenience Stores, Hotels, Golf courses

Modern trade/ Hospitality Team

Modern trade, Thai & Fusion

restaurants, bars, pubs

>80 countries

400,000 Retail shops/ Restaurants

4,500 Sub Agents

1,050 Direct Sales Team

930 Agents

680 Direct Sub Agents

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� 93 sales offices covering every province of Thailand

� Apart from selling directly to retail shops and restaurants, ThaiBev’s direct sales team also fosters good relationship

with retailers and shops as well as recommend and assist them in product display arrangement and pricing

� Extensive distribution network to approx. 400,000 points of sales enabling us to deliver products faster to market

Share Data

Stock PerformanceStock Information

Share Data

Shares outstanding 25,110 m

Free float % (approx.) 21.23%

Based on Annual Report 2010

Major shareholders

Sirivadhanabhakdi family 67.61%

Others 11.16% 25

30

35

40

million shares

Volume (3 Months)

IPO Data

(billions of shares)

*Exchange rate 1SGD = 0.83 USD, 1SGD = 24.95 Baht

Others 11.16%

Market cap (Billion)

(S$0.275, as of 29/7/11)

S$ 6.9

US$ 5.7*

THB 172.2*

0

5

10

15

20

25

1/7/2011 22/7/2011 15/8/2011 6/9/2011 27/9/2011

0.35

Share Price (S$) Price (3 Months)

10

Source: www.shareinvestor.com

(billions of shares)

New shares issued 2.444 10%

Total shares offered 4.889 20%

Shares for institutions 4.645 19%

Shares for Sing retail 0.244 1%

Shares for over allotment (new share) 0.665 3%

0.20

0.25

0.30

1/7/2011 22/7/2011 15/8/2011 6/9/2011 27/9/2011

ThaiBev Close STI Rebased SET Rebased

Dividend Policy: not less than 50% of net profit after deducting all appropriated reserves and investments

Dividend

Dividend Payment 2009 2010

Net Profit belonging to the Company (M Baht) 10,566 10,612

Number of Shares (M) 25,110 25,110 Number of Shares (M) 25,110 25,110

Dividend (M Baht) 8,286 8,789

Less Interm dividend already paid (M Baht) 3,767 3,767

Final dividend (M Baht) 4,519 5,022

Portion of Net Profit 78% 83%

Total Dividend per share (Baht) 0.33 0.35

Less Interm dividend already paid (Baht) 0.15 0.15

Final dividend (Baht) 0.18 0.20

THB: SGD 1* 23.82 23.49

Total Dividend per share (SGD) 0.014 0.015

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Source: ThaiBev’s Financial Statement

Total Dividend per share (SGD) 0.014 0.015

Share close** (SGD) 0.22 0.28

Dividend Yield 6.4% 5.4%

* Annual Selling Rate from Bank of Thailand

** Average closing price from Jan - Dec'09, for year 2009

** Average closing price from Jan - Dec'10, for year 2010

SpiritsSpirits

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BlueCrown 99Sangsom

MungkornThong Mekhong Hong Thong Blend 285

Brown Spirits

Drummer

Choices at several price points but still room to grow upwards

ThaiBev’s Spirits Portfolio

Meridian

* The volume for brown spirits full bottle is 700 ml

Admix whisky

� Bt 165-180

White Spirits

Chinese Herb Spirits

� Bt 205-215� Bt 195-200� Bt 138-150� Bt 140-150 � ~Bt 189-199

Blended Scotch Whisky

Admix Whisky

� Bt 420� Bt 260

Brandy

� Bt 450

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Pai-Thong Chiang-Chun Sua Dum

Bt 55 – 85/ 625 ml

White Tiger White Bear Niyomthai Ruang Khao

Best seller products

ThaiBev’s Spirits Portfolio (Inver House)

Single Malt Scotch Whisky

SpeyburnOld Pulteney AnCnoc Balblair

Blended Scotch Whisky

Green PlaidPinwinnieHankey BannisterCatto’sMacArthur’s Blairmhor

� £24.49- £ 71.49 � £24.99- £ 97.49 � £29.99- £ 149.99 � £22.49- £ 71.49

BarrogillHankey

Bannister

� £21.29� £12.49

Blended Malt Scotch Whisky

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Heather Cream Golden

IceCold

Stream

Kulov

Liqueurs Vodka & Gin

Old Pulteney Liqueurs

� £9.49 � £9.99� £14.99

Caorunn

Spirits: Thai Market

Imported products

Premium imported spirits Scotch whisky

Brands Producer Brands ProducerBrands Producer Brands Producer

Johnnie Walker Black Label Diageo 100 Pipers Pernod Ricard

Chivas Regal Pernod Ricard Johnnie Walker Red Label Diageo

Local products

Local brown spirits, admixes Local white spirits

Brands Producer Brands Producer

Hong Thong ThaiBev Ruang Khao ThaiBev

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Hong Thong ThaiBev Ruang Khao ThaiBev

Blend 285 ThaiBev Pai Thong ThaiBev

SangSom ThaiBev Chinese Herbal ThaiBev

Mungkorn Thong ThaiBev Community Spirits Other producers

Mekhong ThaiBev

ThaiBev’s Total Spirits Sales Volume

ThaiBev Spirits Total Sales Volumes (M liters)

430 455

485 476 446 437

487 516

ThaiBev Spirits Total Sales Volumes (M liters)

16

2003 2004 2005 2006 2007 2008 2009 2010

Spirits Financial Results

Spirits ResultsSource: Company’s Consolidated Financial Statements (Thai GAAP)

(in million Baht) 2008 2009 2010Revenue from Spirits sales 59,781 69,733 77,034

Interest income 40 5 8

Other income 143 183 264

Total Spirits Revenues 59,964 69,921 77,306

Cost of sales 39,191 45,540 52,046

Selling and administrative expenses 6,893 7,611 8,391

EBIT 13,880 16,770 16,869

EBITDA 16,215 19,023 19,171

Interest expense 400 301 161

Income tax expense 3,821 4,833 4,924

Net profit 9,659 11,636 11,784

CoS as % of rev 66% 65% 68%

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* Revenue includes excise tax

* EBIT = Earning before Interest Expense and Tax

* EBITDA = Earning before Interest Expense, Tax, Depreciation and Amortization

CoS as % of rev 66% 65% 68%

S&A as % of rev 12% 11% 11%

Gross profit margin 34% 35% 32%

EBIT Margin 23% 24% 22%

EBITDA Margin 27% 27% 25%

Net profit margin 16% 17% 15%

Spirits Cost Structure: FY10

(% of total revenue)

15.2%

6.6%10.9%

49.7%

5.6%8.4%

1.2% 1.0% 1.4%

Net profit Int. exp.+ Inc.

Tax

SG&A Excise Tax Packaging Raw Material Depreciation Labor Other

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� Main raw material: molasses source domestically

� Molasses storage tanks were built to mitigate the risk of shortage

Tax

BeerBeer

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Beer: Thai Market

Premium brands Economy brands

Brands Producer Brands ProducerBrands Producer Brands Producer

Heineken Thai Asia Pacific Leo Boonrawd

Asahi Boonrawd Chang Classic ThaiBev

Federbräu ThaiBev Chang Draught ThaiBev

Chang Light ThaiBev

Standard brands Archa ThaiBev

Brands Producer Thai Beer Boonrawd

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Brands Producer Thai Beer Boonrawd

Singha Boonrawd Cheers Thai Asia Pacific

Tiger Thai Asia Pacific Red Horse San Miguel

ThaiBev’s Beers

Domestic Lager BeerArcha Chang Chang Draught Chang Light Federbräu

Alcohol Content 5.4% 6.4% 5.0% 4.2% 4.7%

Positioning Light Economy Economy Light Economy Light Economy Premium

Price/ Bottle Bt 37-39 / 640ml Bt 38-42 / 640ml Bt 38-42 / 640ml Bt 38-42 / 640ml Bt 63-65 / 640ml

Key Competitors Leo Leo Leo / Singha Singha/Singha Light Heineken, Asahi

Export Lager BeerChang Export

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Alcohol Content 5.0%*

Positioning Premium Export Beer

Price / Bottle $4

Key Competitors Singha Export

*With exception of Cambodia sold with alcohol content of 6.4%

ThaiBev’s Beer Sales Volume

ThaiBev Beer Total Sales Volume (M Liters)

1,041

944

824

923 957

773

571 596

ThaiBev Beer Total Sales Volume (M Liters)

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2003 2004 2005 2006 2007 2008 2009 2010

Beer Financial Results

Beer ResultsSource: Company’s Consolidated Financial Statements (Thai GAAP)

(in million Baht) 2008 2009 2010Revenue from sales 38,458 30,196 33,729


Other income 61 323 92Other income 61 323 92

Total Beer revenues 38,531 30,523 33,823

Cost of sales 31,143 25,930 28,812

Selling and administrative expenses 6,475 6,587 7,321

EBIT (Loss) 913 (1,994) (2,310)

EBITDA (Loss) 2,923 (403) (690)


Income tax expense 349 (568) (755)

Net profit (Loss) 338 (1,632) (1,628)

CoS as % of sales rev 81% 86% 85%

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* Revenue includes excise tax



CoS as % of sales rev 81% 86% 85%

S&A as % of sales rev 17% 22% 22%


EBIT Margin 2% -7% -7%

EBITDA Margin 8% -1% -2%

Net profit margin 1% -5% -5%

Beer Cost Structure: FY10

(% of total revenue)

-4.8% -2.0%

21.6%

59.0%

12.1%6.8%

2.5% 1.0% 3.8%

Net profit Int. exp.+ Inc.

Tax

SG&A Excise Tax Packaging Raw Material Depreciation Labor Other

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Beer Raw Materials

� Maltsourced from America, Europe and Australia four year long term agreement

� Broken ricesourced domestically

� Hopssourced from America, Germany, Australiafour year contract

Non-alcohol Beverages

Non-alcohol Beverages

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Continue to introduce new products

Kikucha Kikucha : a new chrysanthemum green tea from OISHI

ChakulzaChakulza : Thailand’s first Sparkling Green Tea

New products launched this year New products launched this year

ChakulzaChakulza : Thailand’s first Sparkling Green Tea

• Target Carbonated Soft-drink consumers who look for a healthier choice of carbonated refreshment

FruittoFruitto : a new fruit flavors green tea from Oishi

• Target Young consumers aged between 12-19

• Flavor Mixed berries, Green apple, Yusu orange with lemon

The drink will be produced using an advanced Cold Aseptic Filling technology,

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The drink will be produced using an advanced Cold Aseptic Filling technology, allowing the fresh flavors and vitamins from the fruits to be retained

Blue Magic Tonic Soda WaterBlue Magic Tonic Soda Water:

• Introducing new variant of Chang Soda, as a new mixer for liquor.

• Blue magic offers tropical aroma

ThaiBev’s Non-Alcoholic Drinks

Drinking Water Soda Water Wrangyer(Energy Drink)

Power Plus

OISHI Green Tea Coffio

Oishi Products

� Bt 5-13 (350 ml 500 ml, 600 ml, 1500 ml.) � Bt 6, 10 (325 ml) � Bt 10 (150 ml) � Bt 10 (250 ml)� Bt 15 (325 ml)

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Amino Plus

� Bt 20 (500 ml) � Bt 15 (350 ml) � Bt 10 (250 ml) � Bt 35 (1000 ml)

� Bt 20 (470 ml)

� Bt 20 (230 ml)

Fruitto

� Bt 12/20 (350/500 ml)

Chakulza

� Bt 15 (320 ml)

Kikucha

� Bt 13 (350 ml)

Matcha Milk

� Bt 20 (230 ml)

Non-alcohol Beverages Financial Results

Non-alcoholic Beverages ResultsSource: Company’s Consolidated Financial Statements (Thai GAAP)




Total revenues 3,970 4,948 6,641

Cost of sales 2,938 3,130 4,722

Selling and administrative expenses 838 1,210 1,637

EBIT 194 608 282

EBITDA 599 965 664


Income tax expense (36) 88 (118)

Net profit 164 488 379

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CoS as % of rev 74% 64% 71%

S&A as % of rev 21% 25% 25%





FoodFood

29

Food

1 215 5

48 33

18

1

7 3

2

1 1

30

18

number of outlets: 137 (as of Aug 2011)

7 3 1 1

Food Results

Food ResultsSource: Company’s Consolidated Financial Statements (Thai GAAP)




Total revenues 2,660 3,317 4,094

Cost of sales 1,540 2,054 2,616

Selling and administrative expenses 968 1,093 1,255

EBIT 152 170 223

EBITDA 282 325 411


Income tax expense 6 9 33

Net profit 136 151 186

CoS as % of rev 58% 62% 64%

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CoS as % of rev 58% 62% 64%

S&A as % of rev 37% 33% 31%





International MarketInternational Market

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International Market

• US– Products: Scotch whisky, Chang Beer, Mekhong– Target: Thai restaurants, pubs, bars, Asian supermarket & Modern trade ex. WholeFood– Marketing campaign : Thai concerts

• UK & Europe– Products: Scotch whisky, Chang Beer, Mekhong– Products: Scotch whisky, Chang Beer, Mekhong– Target: Thai restaurants, pubs, bars, Asian supermarket & Modern trade ex. Tesco – Marketing campaign : Sponsor Everton Football Club to promote Chang beer

• ASEAN – Products: Chang Beer , Mekhong– Target: Thai restaurants, pubs, bars, Modern trade ex. 7-11, Cold Storage – Marketing campaign : Everton sponsorship, Golf PGA, ESPN

• CHINA – Products: Yulinquan - Chinese white spirits

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– Products: Yulinquan - Chinese white spirits – Target: Yunnan market – Marketing campaign : promote mid to higher tier white spirits

Update: International Business

ThaiBev’s international operations continued to grow with sales increase of 24% in H1’11. However, the higher marketing activities and support in USA and China, resulted in the net profit decrease by 31% when compared YoY

• USA

– USA performance of Scotch whisky recorded a constant growth over last year

• UK & Rest of the World

– IBHL UK and rest of the world sales growth was 30%, driven by Chang beer and the overall Scotch portfolio of single malts, blends, and bulk sales, all contributing to the growth

• ASEAN

– ASEAN performance was driven by Chang Beer with sales value growth of over +10%

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• CHINA

– YLQ sales in China increased by 35% in H1 versus last year as distribution coverage continued to grow in the Yunnan province

Financial ReviewFinancial Review

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Financial Highlights

Group 2008 2009 2010Sales Revenue 105,452 107,969 121,361 COGS (75,326) (76,609) (88,097)

% of Sales Revenue 71.4% 71.0% 72.6%

SG&A & Other Expenses (15,314) (16,095) (18,574) % of Sales Revenue 14.5% 14.9% 15.3%% of Sales Revenue 14.5% 14.9% 15.3%

EBITDA from Normal Operation 20,081 19,911 19,556 Net Profit from Normal Operation 10,238 10,643 10,721 Capital gain from Thai Alcohol Divestment 526 - -

EBITDA 20,607 19,911 19,556 Net Profit 10,606 10,643 10,721

Less: Minority interests (264) (77) (109) Net Profit belonging to the Company 10,342 10,566 10,612

Margin*EBITDA from Normal Operation 19.0% 18.4% 16.1%Net Profit from Normal Operation 9.7% 9.9% 8.8%

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Revenue includes excise tax

EBITDA = Earning before Interest Expense, Tax, Depreciation and Amortization

Source: Company’s Consolidated Financial Statements 2010 (Thai GAAP)

Net Profit from Normal Operation 9.7% 9.9% 8.8% * margins are % of sales revenue

Group 2008 2009 2010Total Assets 80,059 77,150 77,302 Total Equity Attributable to Equity Holders of the Company 53,763 56,211 57,944 Interest-bearing Liabilities 17,291 11,983 9,362 Net Interest-bearing Liabilities 15,370 9,393 6,003

CapEx Plan

Actual

2010 CapEx = 3.1 billion Baht

Budget



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ProductionProduction

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Production Capacity

Beer

Production Capacity (M Liters) 1,550

Kamphaengphet 900

Bang Ban 530

Spirits

Production Capacity (M Liters) 819

Avr. Utilization rate (approx.) 60%

Non-alcoholic Beverage

Soda & Water


Soft Drinks

Chiangmai

KhonkaenNakornsawan

Samutsakorn

Prachinburi

Ratchaburi

Nakornpathom (3)

PathumthaniBurirum

NongkaiUttaradit

UbonratchathaniKanchanaburi (3)

18 Well-Run Distilleries Throughout

Thailand help us:

– Secure local consumers’

preferences

– Establish barriers to entry

– Save transportation costsAyuthaya: 2

Kamphaengphet

Wang Noi 120

Avr. Utilization rate (approx.) 40%


Nakornratchasima

39

Source: IPO Prospectus, 2006 Annual Report

SuratThaniSuratThani

Suratthani

THAILAND

SuratThaniSuratThani

THAILAND

Three completed distribution centers

situated in three strategic locations

in Thailand

- Nakornratchasima

- Chonburi

- Suratthani

Chonburi

Suratthani

For More Information

Thai Beverage PLC.14 Vibhavadi Rangsit Rd., Chomphon, Chatuchak, Bangkok 10900 THAILAND

Panya ThongchaiOffice: +662 785 5035E-mail: [email protected]

Contact

E-mail: [email protected]

Namfon AungsutornrungsiOffice: +662 785 5037E-mail: [email protected]

Kamolrat LapumnuayponOffice: +662 785 5036E-mail: [email protected]

Tiranan KittipongOffice: +662 785 5281E-mail: [email protected]

Investor Relations Department

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Investor Relations DepartmentE-mail: [email protected]

Corporate website: www.thaibev.comMobile site: m.thaibev.comIR website: www.thaibev.com/set/investor.html

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