4 th Quarter 2015 Financial Results

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Marlene Morris
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1 4 th Quarter 2015 Financial Results 23 rd February 2016

2 Disclaimer The presentation is prepared by Super Group Ltd ( Super or the Group ) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Group in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Group, its business, its current or historical operating results or its future business prospects. The statements are not and should not be construed as management s representation on the future performance of Super. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition, pricing actions, continued volatility in commodity costs, increased costs of sales, risks from operating globally and tax law changes. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Group specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation. 2

3 Content Performance Summary Profit & Loss Highlights Segmental Review Trend Analysis Strategy & Outlook Appendix Balance Sheet Highlights 3

4 Performance Summary for 4Q15 Robust income-generating capability Operating profit up 3% to S$21.2m despite lower sales revenue - Gross profit margin improved by 4 ppt to 39% - Reflects Group s strong income-generating capability 4Q15 sales revenue down 8% to S$141.1m - Branded Consumer ( BC ) sales maintained while Food Ingredients ( FI ) sales declined by 20% Net profit (after tax and minority interests) stood at S$15.7m (4Q14:S$25.9m) - Non-recurring gain of S$6.5m on disposal of a property in 4Q14 - Non-recurring gain of S$0.5m on liquidation of a joint-venture in 4Q14 - Higher effective tax rate (4Q15:25%, 4Q14:10%) Strong financial position - NAV per share at SG cents an increase of 5% - Cash flows from operating activities up 35% to S$34.4m - Cash and cash equivalents of S$123.9m Consistent dividend payout ratio - Paying out 50% of net profit as dividends on an annual basis since 2010 Continue to press on through innovation and diversification - Launch of ESSENSO TM MicroGround Coffee and Owl Kopitiam Roast & Ground Coffee were met with encouraging results - Expect rollout of more new innovative BC products - Strengthening FI sales and marketing functions while appointing more distributors to expand reach 4

5 Performance Summary for 4Q15 Non-recurring gains & higher effective tax rate impacted results 5

6 Profit & Loss Highlights Financial Highlights 4Q15 4Q14 % FY15 FY14 % (S$'000) Change Change Revenue 141, ,658 (8) 509, ,461 (6) Gross Profit 54,460 54,462 NM 182, ,620 (4) Gross Profit Margin (%) ^ ^ Total Operating Expenses (33,277) (33,959) (2) (120,371) (119,654) 1 Profit from Operating Activities 21,183 20, ,069 69,966 (11) Profit from Operating Activities (%) ^ (1)^ Net Finance Income ,008 1,774 (43) Net Other Income 444 8,979 (95) 2,960 10,179 (71) Net Profit (after tax & MI )* 15,718 25,922 (39) 47,270 68,763 (31) Net Profit Margin (%) (6)^ 9 13 (4)^ EBITDA 27,635 33,710 (18) 88,362 98,161 (10) EBITDA Margin (%) (2)^ (1)^ Earnings per share (cents) (39) (31) ^ Denote percentage points *Profit attributable to owners of the company NM: Not Meaningful 6

7 Segmental Review BC remained major revenue contributor & primary pillar of growth Super s integrated business model Downstream BC segment BC accounts for 68% of sales (4Q14: 63%) Upstream FI segment FI accounts for 32% of sales (4Q14: 37%) 7

8 Segmental Review BC Sales Impact from currency weakness buffered by new product launches Sales declined marginally by 1% to S$96.0m Southeast Asia Revenue declined 2% YoY in 4Q15, mainly due to Myanmar (weaker Kyat against the USD) Philippines Partially offset by stronger performance in Singapore and Malaysia (new product launches) Thailand East Asia Sales grew 39% YoY in 4Q15 ---Better performance in China following the successful rollout of products in 2Q15 ---Continued branding and marketing efforts Others Sales declined 29% YoY in 4Q15 ---Eastern Europe (weaker domestic currencies against USD) 8

9 Segmental Review BC Sales Coffee sales boosted by rollout of new products Coffee remained the major revenue contributor at 77%, followed by Cereals at 10% New product rollout received encouraging results ESSENSO TM MicroGround Coffee Owl Kopitiam Roast & Ground Coffee Continue to focus on BRANDING and PRODUCT INNOVATION to drive growth ---To drive innovation in other categories such as Tea and Cereal 9

10 Segmental Review FI Sales Dragged by regional currency weakness &/or market slowdown Sales declined 20% to S$45.0m Southeast Asia 4Q15 sales declined mainly due to lower sales into Indonesia on the back of weaker economy and Indonesian Rupiah against the USD Partially offset by higher sales in Philippines East Asia Revenue declined mainly due to a slowdown in the China market Partially offset by higher sales into Taiwan 10

11 Segmental Review FI Sales Non-dairy creamer remains major revenue contributor NDC remains the largest contributor, contributing 72% to revenue, followed by SCP at 27% Focus on moving up the value chain, through Value-add existing products Rollout premium products Expanding distribution reach and increasing market penetration by Strengthening sales and marketing functions Appointing more distributors 11

12 Trend Analysis Operating Cash Flow Cash-generative business model S$m 90.0 Operating cash flows and operating cash flows as a percentage of revenue 18% % 16% 14% % 12% 11% 13% 12% 10% % % 4% 2% 0% Operating Cash flows Operating cash flows as a % of revenue Robust operating cashflows; increased to 13% of revenue (or S$66.9m) in FY2015 Reflects the Group s cash-generative model 12

13 Trend Analysis Operating Profit Strong income-generating capability S$m Operating profit and Revenue Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 S$m Operating profit Sales Revenue 4Q15 operating profit increased by 3% YoY to S$21.2m despite lower sales revenue Higher GPM (4Q15:39%; 4Q14:35%) Effects of higher depreciation charges (from completion of expansion projects in 2014) tapering off in 4Q15 Reflects the Group s strong income-generating capability 13

14 Trend Analysis Net Asset Value and Cash & Cash Equivalents Strong financial resources to execute growth strategy S$m Net asset value(nav) and Cash & Cash equivalents S$m Cash and cash equivalents Net asset value Stable growth in NAV; resilient during challenging times Cash & cash equivalents increased to S$123.9m as at 31 December 2015 Super has the financial resources to execute growth strategy and tide through challenges 14

15 Trend Analysis Dividend Payout Ratio Consistently paying at least 50% of net profit as dividends % 80.0 Dividend payout ratio Dividend payout ratio (dividend expressed as a percentage of net profit) Consistently paid out >50% of net profit as dividends to shareholders Total dividend paid out since 2010 is S$211.0m 15

16 Strategy & Outlook Pushing Through Headwinds in Difficult Economic Environment 16

17 Strategy & Outlook Business in a difficult economic environment Branding Increased momentum in key growth markets like China

18 Strategy & Outlook Innovative products pipeline to drive growth in Coffee, Cereal & Tea categories Innovation New products roll out in key markets 18

19 Strategy & Outlook Expanding distribution network & growing beyond Coffee category Diversify geographically 19

20 Strategy & Outlook Product Innovation on track to deliver revenue contribution 20

21 Strategy & Outlook Outlook and Guidance Remain cautiously optimistic and upbeat about the future of Super despite a challenging economic environment that affect overall demand and consumer sentiments in key markets Key raw material prices have softened but likely to be cyclical as uncertainty remains a trend of raw materials We expect continued intense competition from local, regional and global brands Forex volatility and fluctuations expected to affect Group operating performance We expect our markets and business environments in 2016 to be similar to 2015 with consistent headwinds and aggressive pricing competition. With the above conditions, growth strategy of BID continue to be in place while we aim to be leaner and improved operational efficiency. 21

22 Appendix 22

23 Balance Sheet Highlights In S$ 000 Dec 15 Dec 14 Non-Current Assets Property, plant and equipment 287, , , ,274 In S$ 000 Dec 15 Dec 14 Non-Current Liabilities Deferred taxation 7,369 7,298 6,788 6,746 Current Assets Inventories Trade and other receivables Cash and cash equivalents Current Liabilities Trade and other payables Bank loan 377, , , , ,639 80,523 27, , , , , ,307 79,466 20,000 Property, plant and equipment decreased mainly due to depreciation charges Inventories decreased mainly due to lower raw material balances Trade and other receivables increased due to higher trade receivables Equity attributable to owners of the Company Ratios NAV per share (cents) Debt-to-equity ratio (times)* Current ratio (times) Trade Receivables turnover (mths) Inventory turnover (mths) Trade Payables turnover (mths) 521, , * Computed based on Total Liabilities divided by Total Equity. Bank loans were used to finance working capital NAV per share stood at cents D/E ratio of 0.24 times; low gearing Cash and cash equivalents increased to S$123.9m 23

24 For Investor Relations, please contact: Candy Chng Group Corporate Affairs & Investor Relations Tel: (65)

Financial Results (unaudited)

4 th Quarter and Full Year 2011 Financial Results (unaudited) 24 February 2012 1 1 Important note on forward looking statements The presentation herein may contain forward looking statements by the management