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Strictly Private & ConfidentialMay 2019Carabao Group
Corporate Presentation 1Q19
11
DisclaimerThe provision herein does not constitute legal advice or investment opinions of any kind, neither is it intended as anoffer, solicitation for Carabao Group PCL. (“CBG” or “The Group”). The information presented within this material isintended to indicate the Group’s operational and financial position at a given period of time and to be used,downloaded, and distributed for analyst briefings, and general meetings with CBG, and to be used for educationalmaterial in order to understand CBG’s operation only. The Group makes no representation that all information iscomplete and accurate for the purpose of producing a projection of CBG’s operations, performance, or financial positionand may be susceptible to uncertainty and important changes based on political, economic, strategic, and other suchuncontrollable factors. Forward looking statements in this presentation are based on the management’s assumption inlight of information currently available and obtainable, as well as the aforementioned/unmentioned risks anduncertainties. CBG’s actual results may vary materially from those expressed or implied in its forward-lookingstatements, and no assurance is made as to whether such future events will occur. The Group accepts no liabilitywhatsoever for any loss arising directly or indirectly from the use or endorsement of any information contained hereinby any users and/or third parties.
TOTAL SALES
฿3,361mn 1%YoY
ENERGY DRINK SALES
57% from
OVERSEAS
CLMV SALES
฿1,444 13%YoY
ENDED 31 MARCH 2019
EBITDA
฿667mn 99%YoY
1Q19 AT A GLANCE
33
Total Sales
Sales by Quarter (THBmn) Growth Portion1Q2019
Sales YTD (THBmn)
GPM
GPM
Domestic sales
Overseas sales
Domestic sales
Overseas sales
Growth PortionFY2018
44
Sales (THBmn) & GPM (%) by BusinessOVERSEASDOMESTIC: BRANDED OWN
DOMESTIC: DISTRIBUTION for 3rd PARTYDOMESTIC: BRANDED OEM
GPM
GPM GPM
GPM
55
Domestic Sales
DOMESTIC SALES BY CHANNEL BREAKDOWN OF DOMESTIC GPM BY BUSINESS
Domestic Slow down in branded products sales due to some delay in key marketing activities to the rest of the year
YoY as a result of economies of scale and reduction of key material prices
YoY due to gradual adjustment for selling price of Coffee RTDYoY due to a product mix
66
Overseas salesOverseas strong present in CLMV markets and new markets added thanks to the fame of Carabao Cup
THB mn FY16 FY17 FY18 %YoY 2Y-CAGR 1Q18 4Q18 1Q19 %YoY %QoQCLMV 2,546 3,293 5,498 67% 47% 1,276 1,554 1,444 13% -7%Other ASIA 493 262 92 -65% -57% 2 23 86 5061% 280%CHINA 23 1,019 592 -42% 411% 209 72 52 -75% -28%UK 56 178 72 -60% 13% 41 30- 15 -64% -150%Others 255 499 242 -52% -3% 24 88 58 145% -34%Total 3,388 5,454 6,580 21% 39% 1,595 1,679 1,676 5% 0%
1,019
77
Reduced after all capacity expansion projects completed in 2018
Decomposed EBITDA & Debt Profile
Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016
Non-ICUK (THBmn) ICUK Group (THBmn) Consolidation (THBmn)
Interest bearing debts / Total Equity Total Liabilities / Total Equity
Key indicator of consolidated debt profile
Representing global sponsorship fees incurred by Non-ICUKgroup of companies
Representing global sponsorship fees incurred by ICUK group of companies
Representing global sponsorship fees incurred by consolidation
88
STATEMENT OF FINANCIAL POSITION Unit: THB millionASSETS Dec-18 Mar-19 Change LIABILITIES Dec-18 Mar-19 ChangeCurrent Assets Current LiabilitiesCash, Cash Equivalents 138 379 241 Short-term loans 275 109 (166)Current Investments - - 0 Trade and other payable 1,810 1,538 (272)Trade and other receivable 907 806 (100) Current portion of long-term loans 401 474 73Inventories 887 968 81 Other current liabilities 278 369 91Other current assets 546 533 (13) Total Current Liabilities 2,764 2,490 (274)Total Current Assets 2,477 2,685 208 Long-term loans 1,279 1,261 (18)
Debentures 2,786 2,786 1Other non-current liabilities 126 138 12Total non-current liabilities 4,191 4,186 (5)
Non-Current Assets Total Liabilities 6,955 6,676 (279)Long-term Investment - - 0 SHAREHOLDERS' EQUITYInvestment Properties 100 106 6 Issued and fully paid up share capital 1,000 1,000 0Property, plant & equipment 11,090 11,018 (72) Premium on shares 3,963 3,963 0Intangible Assets 77 78 1 Retained earnings 2,240 2,659 419Deferred Tax Assets 63 56 (7) Other components of shareholders' equity 26- 6- 1Other non-current assets 12 12 0 Equity attributable to owners of the Company 7,177 7,616 440Goodwill 500 507 7 Non-controlling interests of the subsidiary 188 170 (18)Total Non-Current Assets 11,843 11,777 (66) Total shareholders' equity 7,365 7,786 421Total Assets 14,320 14,463 143 Total liabilities and Equity 14,320 14,463 143
Statement of financial position
99
Unit: THB million 2017 2018 Change 2018 1Q2018 1Q2019 Change 1Q2018 1Q2019(Adj.) YoY %sales (Adj.) YoY %sales %sales
Revenue from sales 12,904 14,422 11.8% 100.0% 3,341 3,361 0.6% 100.0% 100.0%Costs of goods sold 8,840 9,813 11.0% 68.0% 2,347 2,171 -7.5% 70.2% 64.6%Gross profits 4,065 4,609 13.4% 32.0% 994 1,189 19.6% 29.8% 35.4%Selling expenses 2,379 2,520 5.9% 17.5% 618 480 -22.3% 18.5% 14.3%G&A expenses 741 788 6.4% 5.5% 195 195 0.0% 5.8% 5.8%Operating profits 945 1,301 37.6% 9.0% 181 514 183.9% 5.4% 15.3%Other incomes 164 135 -17.5% 0.9% 53 30 -43.8% 1.6% 0.9%Other expenses - - - - 9 - - 0.3%EBIT 1,109 1,435 29.4% 10.0% 234 535 128.4% 7.0% 15.9%EBITDA 1,372 1,899 38.4% 13.2% 337 667 97.8% 10.1% 19.9%Interest expenses 48 107 124.0% 0.7% 25 35 41.4% 0.7% 1.0%EBT 1,061 1,329 25.2% 9.2% 210 500 138.6% 6.3% 14.9%Income tax expenses 261 368 41.3% 2.6% 79 101 27.8% 2.4% 3.0%Net profits for the period 801 960 19.9% 6.7% 130 399 205.9% 3.9% 11.9%
1,246 1,159 -7.0% 8.0% 181 419 132.4% 5.4% 12.5%Equity Holder of the Company
Statement of comprehensive income
Remark: *CBG increased shareholdings in ICUK, a subsidiary operating marketing and distribution of Carabao products in the UK and other countries outside Asia,from 51% to 84% since 1Q18 onwards.
*
1010
Mass, World-Class Marketing Tool
CARABAO CUP GLOBAL MEDIA PLATFORM
30Broadcasters
175Territories covered
762mPotential household reach
Renew contract for 2 years ended in 2021/2022 season(same price)
44%Increase in
brand positivity
106%Increase in association with the EFL
36%Increase in
brand awareness
Present in over 30countries
Over
50%energy drink sales from overseas
2018/19 season
1111
GREEN APPLE 180ml.
330 ml.
Available only in 7-Eleven
Retail price THB 25 (incl. VAT)
Launched in Jun’ 18 Launched in Mar’ 19
180 ml.
Made available in all channels (MT, TT, Cash vans)
Retail price THB 15 (incl. VAT)
VOL SHARE, can energy drink
market, in Apr’19
20-34Target age range of consumer
1313
Appendix:Corporate Profile
World Class Product, World Class Brand
1414
Categories Product Portfolio
Energy drink
Coffee
Others
Company overview Carabao is the 2nd largest energy drink company in Thailand with strong distribution channel and a successful overseas business, which represents c.51% of the total revenue Business overview Product overview
Carabao Sportelectrolyte drink Drinking water
3-in-1 instant coffee RTD coffee drink
Source: 1. Nielsen energy drink market report, as of March 2019 ("Nielsen Report")
Carabao's market share evolution1
% of Thailand energy drink market share
• Founded in 2001 as a partnership between 3 founders one of which is the leading singer of Carabao (Thai legendary folk band), the Carabao Group is now the 2nd largest energy drink company in Thailand with 22.8% market share1
• Its main product, Carabao Energy Drink, is packaged into amber glass bottles or aluminum cans. Other branded products include bottled water, coffee, Carabao Sport electrolyte drink and other 3rd party products
• Vertically integrated business model - CBG manufactures and distributes its own products, while excess distribution is maximize by distributing 3rd party products
• Carabao has strong in-house production capabilities of glass bottle, and aluminum can (production commenced in late Q4 2018)
• Strong distribution channel with presence in both traditional and modern channels
o Over 50 first tier agents
o 31 distribution centers across Thailand
o 326 cash vans, covering c.180,000 retailers
• Successfully tapped into global markets
o Strong presence in international markets including Cambodia,
Myanmar, Vietnam, Laos and other countries
o Penetrating into new key strategic countries i.e. China
o Opportunities in new export markets thanks to the fame of
Carabao Cup
1515
78% 84% 84% 90% 91% 91% 90% 91%
Note: A number of niche positioned brands expanded their consumer groups and thus gained increasing shares in the market, altogether commanding higher market shares, up to 11% in FY18 from 8% in 2017
Selling Distribution (Coverage)
Significant share of Thai energy drink marketEnergy drink market grew by 5.3%YoY in 1Q19, accelerated from a pick-up of 0.2% growth in FY18
Source: Nielsen report as of Mar’19
1717
Domestic and international business overview
Sales breakdown
Increasing presence in the international market to drive growth
Domestic revenue by products
FY2018 domestic revenue:
THB 7,928m (+1% YoY)
International revenue by products
FY2018 international revenue:
THB 6,476m (+29% YoY)
International revenue by country
FY2018 international revenue:
THB 6,476m (+29% YoY)
Established overseas
business diversifies
dependence on Thailand
1818
FOUNDERS
Founded TawandangGerman Brewery in 1999Founded CarabaoTawandang in 2002
Mr. Sathien Setthasit CEO
Miss Nutchamai Thanombooncharoen Managing Director
Mr. Yuenyong Opakul (Add Carabao)Senior Deputy Managing Director
Managed business with Mr. Sathien since 1999Managing Director of Carabao since inception
Formed the origin of Carabao - the Carabao band - in1977Gathered millions of fans for the brand since
1919
Carabao is Thailand’s legendary music-for-life & one of the most respected band in Thailand
Carabao & Santana in Bangkok 29th Feb. 2016[Est. 1981]
Strong brand recognition associated with Carabao band
Songs for life music are reflections of aspects of Thai society
For over 30 years, Carabao songs have been known to speakto the Thai people in a manner that can easily be related totheir own life experience and provide the hope and strengthto keep fighting.
The result is a truly passionate fan base that are overlappingwith energy drink target groups across the country that livesand breathes the Carabao “Fighting Spirit”.
2020
Shareholding structure
Mr. Sathien Setthasit’sGroup
Ms. NutchamaiThanombooncharoen’s
Group
Mr. Yuenyong Opakul’sGroup
Free Float
34% 23% 14% 26%
Note: (1) CBG’s shareholding in CVHLUX increased from 51.0% to 84.3% effectively on 8 January 2018 due to exercising the right offerings of CVHLUX and converting
shareholders’ loans to equity, in accordance with the Change of Overseas Subsidiaries’ Capital Structure transaction
(2) The remaining portion of 26% is held by SHOWA DENKO Group, a Japanese business partner
Others
3%
Remark: Shareholding portion as of December 28, 2018
Manufactures, markets and sells the Group’s products
Manages the domestic distribution of the Group’s product
Manufactures and supplies glass bottles required for the manufacturethe Group’s product
CBD DCM APG ACM CHHK
CVHLUX
ICUK
CTHK
Manufactures and supplies aluminumcans used as packaging materials for the Group’s Product
Operating Subsidiaries
Holding Subsidiaries
CARABAO GROUP
100% 100% 100% 100% 100%
100%
74% (2)
84% (1)
THAILAND OUTSIDE THAILAND
Registered and Fully Paid-up Capital THB 1,000 Million
Distribution, selling and marketing in the UK and outside-Asia
International trading arm
2121
Management TeamINSTRUMENTAL TO BUILDING COMPANY’S SUCCESS
1. People: Develop our people with good attitude, willingness to learn, innovation, accountability
2. Work System: Execute with concise and international standard work system
3. Organization & Management: Operate with clear objective and understandable responsibility, proper organization structure, and project-based approach
4. Technology: Embed technology and innovation in our processes through production, management, sustainability development
5. Product: Produce quality and well-known world class product
6. Brand: Be wealthy and modern world class brand
7. Corporate Image: Be known as world class organization with good governance and social responsibility
MISSION
VISION
World Class Product, World Class BrandMr. Sathien SetthasitChief Executive Officer
Co-Founder of the Group in 2001
Ms. Nutchamai ThanombooncharoenManaging Director
Co-Founder of the Group in 2001
Mr. Yuenyong Opakul (Add)Senior Deputy Managing Director• Co-Founder of the
Group in 2001• Lead singer of
Carabao• Brand Ambassador of
Carabao energy drink
Mrs. Wongdao ThanombooncharoenSenior Deputy Managing Director
Been with the Group since 2008
Mr. Kamoldist SmuthkochornDeputy Managing Director – Marketing
Been with the Group since 2002
Mr. Pongsarn KhlongwathanakithChief Financial Officer
Joined in 2015, from CIMB Investment Bank
Mr. Kartchai Jamkajornkeiat Assistant Managing Director –Production/ Int’l BusinessBeen with the Group
since 2012
Mr. Romtham SetthasitDeputy Managing Director – Int’l Business
Been with the Group since 2015
2222
Key Milestones and Developments
NO. 1 Challenger
2004 Began
exporting to 15 countries
Oct 2002 Carabao Dangwas launched
2012 DCM established as a
distributor for Carabao products
2013 APG manufactured glass bottles for Carabao products
2004 In 18 months of the launch, Carabao overtook Krating Daeng position to
become the No. 1 challenger in the market
2014 Start Plus Zinc an electrolyte beverage was
launched; renamed to Carabao Sport in 2018
Nov 2014 Carabao Group began
trading in Stock Exchange of Thailand
2015 Start establishing own distribution centers
with a national coverage of 300,000 outlets
Jul 2016 Carabao 3in1 Coffee
was launched
Oct 2016 Carabao RTD Coffee
was launched
2016 Carabao Drinking Water was
launched
2015Sponsorship of
Chelsea F.C.
Jun 2017 Sponsorship of the
EFL Cup; The Carabao Cup.
Mar 2017 established as a JV with
SHOWA DENKO Group to produce aluminum cans
Jun 2018 Carabao Green
Apple was launched in Thailand
2323
Vertically integrated manufacturing facilities
Energy drink production facilities
• 11 production lines
• Prod. Cap. of 1,800 million bottles p.a.
• 7 production lines
• Now: Prod. Cap. of 1,600 million cans p.a.
Bottles filling
Cans filling
• Prod. Cap. of 1,300 million bottles p.a.
• Maximum molten glass production of 310X2 tons per day
APG glass bottle manufacturing facility
ACM Aluminum can manufacturing facility
• Prod. Cap. of 1,000 million cans p.a.
• Started to commercialize in 4Q2018
• Technology knowhow supported by SHOWA DENKO Group, a leading aluminum company from Japan
(JV with Showa Denko Aluminum Can)
Certifications:
Certifications:
State-of-the-art manufacturing facilities to ensure safe and efficient production
Plant location: 50 KM from central Bangkok
2424
Dedicated in-house marketing team has established strong relationships with multiple media channels, enabling us to react to market trends and minimize lead time and costs
Flexible uses of multimedia channels to reach target consumers: media advertising, on-the-ground marketing team, brand ambassador and event sponsorships
Global marketing platform via international football sponsorships to widen windows of opportunity in global stage
Below the Line
On-ground marketing
More than 80 BaoDangGirl Teams, consisting of c.600 members, promote social activities
Brand Ambassador and events sponsorships
Celebrity spokesperson promoting our brand, as well as enhancing corporate image
Contributes significantly in establishing our brand
Regularly sponsor events which appeal to target consumers
Above the Line
TV commercials for wider reach
Print ads in magazines, newspapers and posters
Marketing Channels
2525
End Consumers
Domestic Marketc. 51%1
1. Traditional Trade – 80%1
2. Modern Trade – 20%1
3. Importers, Distributors, International Dealers
End Consumers…
… …
Tier 1
Tier 2Tier 2
Tier 3Tier 3 Tier 3
Retailers
Convenience stores, Supermarkets, Hypermarkets
Traditional retail shops
~ 50 agents
~ 500-1,000 sub- agents
Note: (1) Sales Figure, 3M2019
(2) Launched in Q2/15 . Reached 31 distribution centers in March 2017
B. Cash Vans – 33%2
A. 3-tiered agent distribution network – 47%
• 31 DCs • 326 Vans• 180,000 retailers
Strong local distribution network covering both modern and traditional channels with unique cash van strategy
Comprehensive Distribution Network
International Marketc. 49%1
2626
7 DCs
9 DCs
3 DCs
W
31 DCs with 326 Vans, covering approx. 180,000 registered retailers nationwide
4 DCs
2 DCs
6 DCs
Note : Base on Information at December 2018
Cash Van & Distribution Center (DC) nationwide
2727
Carabao Energy Drink
(Original)
Carabao Energy Drink
(Original Export)
CarabaoCarbonated
Carabao Ginseng Edition
Carabao Carbonated (Original)
Carabao Carbonated
(Sugar Free)
CarabaoCarbonated
(Green Apple)
Carabao Energy Drink
(The PRC Market)
CarabaoCarbonated (Mandarin Orange)
CarabaoCarbonated
(Green Apple)
• 150ml amber glass bottle
• Flat taste
• Caffeinated + B12
• 250ml aluminum can
• Flat taste
• Caffeinated + B12
• 330ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• 330 ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Ginseng Extract
• 330ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Less sugar (1:4)
• 330 ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Sugar Free
• 330 ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Green Apple Flavour
• 250 ml aluminum can
• Non-Carbonated
• 330 ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Orange Flavour
• 180 ml aluminum can
• Carbonated
• Caffeinated + Multivitamins
• Green Apple Flavour
Domestic (mainly)
Export Only Export in Asia First market: Afghanistan
First market: UK
First market: UK
First market: UK
The PRC Market
First market: UK
First market: Thailand
October 2001 2004 May 2015 February 2016 April 2016 August 2016 October 2016 March 2017 April 2018 Mar 2019
10 THB(domestic)
Differ in various
countries
2,000 Riel(17 Baht)
Differ in various
countries
1.19 GBP 1.19 GBP 1.19 GBP 6 CNY 1.19 GBP 15 THB
Our Product Portfolio (Energy Drink SKUs)
2828
Products Carabao SportCarabao
Drinking WaterCarabao Coffee (Rich Aroma)
Carabao Coffee (Espresso)
Carabao Coffee (Robusta)
Carabao Coffee (Espresso)
Descriptions • 250ml glass bottle
• Flat taste
• Electrolyte & vitamins
• (No caffeine)
• 2 size = 600ml & 1200ml
• Outsource production
• Distribution through Cash Vans Channel
• 30 small sticks in 1 pack
• Outsource production
• Distribution through Cash Vans Cannel and Tesco
• 30 small sticks in 1 pack
• Outsource production
• Distribution through Cash Vans Cannel and Tesco
• 180ml can
• Outsource production
• Distribution through Cash Vans Channel, BigC and 7-Eleven
• 180ml can
• Outsource production
• Distribution through Cash Vans Channel, BigC and 7-Eleven
Domestic Market
Launch Date May 2014 February 2016 July 2016 November 2016
Retail Selling Price
10 THB 7 & 12 THB 85 THB 10 THB
Our Product Portfolio (Non-Energy Drink SKUs)
2929
Products Seaweed Dish Washing Liquid
Peanuts Toothbrush Razor Juice Fabric Softener
Squid Snacks
Retail Selling Price (THB)
5 10 5 10 10 10 10 5
Launch Date
November 2015 April 2016 June 2016 July 2016 August 2016 September 2016
Products Toilet Cleaner Tissue Detergent Canned fish Coconut Nectar
Retail Selling Price (THB)
25 5 10
Launch Date
October 2016 December 2016 December 2016
October 2017
January 2018
Note: As of December 2016
3rd Party Products for distribution
3030
Carabao Group Public Co., Ltd.
Tel: +66 2636 6111 Ext.882
Email : [email protected]
www.carabaogroup.com/en